According to the Token Terminal data aggregator, there are some marked differences between the revenues generated by some of the biggest DeFi projects and the Axie Infinity game. No matter what time window you choose, whether it's a week, a month, or a year, Axie Infinity is the most profitable protocol on the market. Sometimes this margin is also huge. Last month, the main crypto game raised $84.9 million in funds. The next runner-up, Binance Smart Chain DEX PancakeSwap, raised $11.9 million. Even the MetaMask wallet, which has more than 5 million users, is in third place, with total revenue of $7.4 million. Revenue in the last 30 days for multiple protocols. Axie Infinity is on the far right. Source: Token TerminalThis revenue is generated through interaction fees with each protocol. PancakeSwap, for example, charges users 0.2% for every trade made on the decentralized exchange. MetaMask charges a much higher 0.825% fee for trades made using its recently launched swap feature. Axie Infinity, however, has several revenue streams that have helped sustain its numbers. The first is a market rate of 4.25%. Each time you buy or sell one of the Pokémon-like Axie creatures, the seller pays that fee. The same rate also applies whenever you buy land parcels, special items or so-called “packs” of some combination of the three. The second revenue generator is a fee of 4 AXS, the game's native token, to “create” Axies to create more creatures. AXS is currently trading at around $16.19. Furthermore, to play, users must have three Axies. And with an influx of new users each day, the pressure to buy and create is increasing, resulting in a kind of spinning wheel of fee-generating opportunities.
Why is Axie Infinity growing?
Axie Infinity is taking advantage of the growing trend of playing to win, which essentially means earning money to play. But instead of high-fidelity electronic sports tournaments and multi-million dollar live streams from Twitch, Axie's economics are built into the game. Every Axie, for example, is worth real money. The same goes for the AXS token and the SLP (Smooth Love Potion) token, which you also need to create more Axies. Essentially, all items to be won in the game can be resold for cash, and all you have to do to get them is simply play. *Translated and republished with permission from Decrypt.co