The boom of GameFi and non-fungible tokens has resulted in the emergence of many in-game digital assets and cryptocurrencies that promote player engagement. Most of these games, which are part of the Metaverse, have gone a step further by creating cryptocurrencies that drive their virtual economies. Axie Infinity with its cryptocurrency and in-game asset called Smooth Love Potion (SLP) is an example of such a game.
What is Axie Infinity?
Axie Infinity, built on the Ethereum blockchain, is one of the leading gaming and DeFi projects. It is a play-to-earn gaming platform that has characters called Axies that exist as non-fungible tokens (NFTs). In order to participate in the game, a player should assemble a team of Axies.
What is SLP?
The Smooth Love Potion (SLP), an ERC20 token, is the Axie Infinity ecosystem’s in-game currency. As such, players earn SLP when they participate in various gaming activities such as adventures and battles. Also, they use SLP to purchase the Axies they want to use during the games.
The factors that affect the price of the Smooth Love Potion. There are variously internal and external factors that affect the price of SLP which include the expansion of the gaming industry and the token’s utility.
The utility of SLP in the Axie Infinity Ecosystem
The SLP is Axie Infinity’s in-game currency since the players use it to purchase the Axies they need to play the game. In addition, the platform rewards the players using the SLP. For example, the gamers earn the SLP token when they participate in the game’s special events and activities such as battles.
As part of the game, the players wager their SLP in order to take part in contests. As a result, such SLP tokens form a central prize pool. Therefore, the players that battle with the Axies in the battle arena may win these tokens.
Sale of the SLP to other players
Although the players usually earn the SLP when they participate in the game there are other users who do not win them. Such people may choose to purchase them from the users who hold them. For that reason, there is a secondary market where the players can buy and sell the SLP tokens, thereby raising their demand.
Sale of SLP to investors for the purpose of speculation
SLP is a cryptocurrency with monetary value and people can transfer it to others on the Gate.io crypto exchange which provides the latest 1400+ cryptocurrency prices including SLP, BTC, and ETH. Also, investors can trade it on different crypto exchanges since they can purchase it when its value is low and sell it when the price rises.
What is important, in this case, is for the investors to trade it on reputable exchanges such as Gate.io which have low fees and reliable technical analysis indicators. Notably, the availability of SLP on cryptocurrency exchanges increases its demand and liquidity.
Purchasing real-life goods and services
As noted, SLP is a true cryptocurrency with a monetary value attached to it. Therefore, people can use it to buy goods and services such as smartphones and sneakers. However, the SLP tokens are not yet internationally accepted as means of payment. They are only accepted in certain countries like the Philippines where many people play Axie Infinity.
It is also important to note that, since SLP is an ERC-20 cryptocurrency, people can transfer or hold it in crypto wallets that accept Ethereum tokens and coins like ETH. For example, you can use MetaMask or Rainbow Wallet, among others, to manage your SLP tokens. As well, this makes it acceptable to many people around the globe.
Global gaming expansion
The other reason why the demand for SLP will increase is the expansion of the gaming industry. As you are aware, the market for gaming products keeps on expanding as new users join the fray. Since Axie Infinity is the leading blockchain-based game the demand for SLP is likely to keep on increasing.
Already, the gaming industry is worth more than $120 billion, yet analysts predict greater adoption in the near future. As an example, analysts predict that the gaming market size is likely to exceed USD 504.29 billion by 2030.
The Covid-19 pandemic increased the demand for blockchain-based games since many people sought ways to enhance their social interaction during that period. In addition, universities and colleges are offering courses that enable their students to consider future professional careers in the gaming sector.
Further to this, there has been vast investment in the gaming sector since 2020. Many start-ups such as A16z have been investing in the sector. Already, A16z has invested over $150 million in Mythical Games, one of the most promising peer-to-peer (P2P) gaming platforms.
The recent performance of Axie Infinity
In 2022 Axie Infinity was the best performer in the metaverse sector, generating $590, 50 million in revenue. However, despite its steady growth, the average earnings of an Axie player decreased significantly in 2022.
Early in 2022, each player could earn around 150 SLP which used to translate to a cash value of between $40 and $50 per day. However, since the price of SLP is lower these days, the amount a player earns in monetary terms is less than before. Even though the price of SLP is depressed, the game still has many users.
Partnerships and endorsements
Axie Infinity has partnered with some leading tech companies and brands. Examples of its partners are Aave, Maker Samsung, Kyber Network, Delphi Digital, Upbit, Kyber Network, and Ubisoft. Some of these partners are centralized and decentralized crypto exchanges which can assist in increasing the demand for SLP.
SLP price prediction
The bearish crypto market in 2022 resulted in the fall of the price of SLP. For instance, in 2022 the price of SLP was, at one time, as low as $0.0087. However, looking at the different price predictions that experts have provided, the price of SLP is likely to increase over the years, despite market corrections and consolidations.
SLP Price prediction for 2023
According to CoinStatics, the price of the SLP token will fluctuate between $0.068 and $0.081 in 2023. Considering that the current price of SLP is 0.0029, Axie Infinity has to expand significantly for the SLP token to trade between $0.068 and $0.081 during 2023.
Digitalcoinprice predicts the value of SLP to range between $0.00434 and $0.00587 in 2023. Yet, Bitcoinwisdom estimates that its price will fluctuate between $0.00364 and $0.004549 within the second half of 2023.
Considering that the current price of SLP is $0.00289, it is possible that its value will range between $0.00364 and $0.00587 within the second half of 2023.
SLP Price prediction for 2025
The price of SLP is likely to be much higher than now because of several factors such as the growth in the gaming industry and a better global economic outlook.
Coinstatics estimates that the price of SLP is likely to range between $0.125 and $0.151 in 2025. However, Bitcoinwisdom anticipates it to fluctuate between $0.0090 and $0.0106, with an average value of $0.0097.
On the other hand, Digitalcoinprice predicts that the value of SLP will be between $0.0085 and $0.0089. Therefore, considering the above market predictions, SLP is likely to range between $0.085 and $0.151 in 2025.
SLP Forecast for 2030
Telegaon predicts that SLP will, generally, be bullish between 2023 and 2030. Therefore, it estimates that its price may reach $2.17 in 2030, with an average price of $1.59. On the other hand, Bitcoin wisdom says that the SLP value will range between $0.0242 and $0.025, with an average of $0.024.
Likewise, CoinStatics estimates that the price of SLP will be around $0.712 in 2030. Primarily, the Axie SLP price will likely go up due to an increase in the adoption rate and utility. Another data analytic website, Digitalcoinprice, believes that the value of SLP will range between $0.0286 and 0.0287 by the end of 2030.
After analyzing these predictions and many others, the most probable price range for SLP in 2030 is between $0.151 and $2.17.
Is SLP a good investment?
The truth is that Axie Infinity is the leading blockchain game with the potential to scale to greater heights. Since the game keeps on growing, it looks like the SLP token is a good investment asset.
The other good reason to invest in SLP is that it is not just an in-game currency but an ERC-20 cryptocurrency that exists on many crypto exchanges. Therefore, there are many investors who buy and hold it, expecting its value to increase in the future.
In general terms, the gaming industry is expanding remarkably, meaning that the demand for metaverse tokens such as SLP will increase once the bearish market is over.
Conclusion
Axie Infinity is one of the leading blockchain-based games. Many people play it because they earn the Smooth Love Potion (SLP) which is its in-game currency. Although players can earn it when they play the game, people can also purchase it on crypto exchanges because it is an ERC-20 token.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any project.
