AXIE INFINITY TOKEN AXS GAINS 40% AFTER TAKING STEPS TO AVOID PERMANENT ECONOMIC COLLAPSE

Last updated: June 19, 2025, 18:18 | Written by: Samson Mow

The world of blockchain gaming can be volatile, and few projects have experienced the highs and lows quite like Axie Infinity.Recently, the Axie Infinity (AXS) token has experienced a remarkable surge, climbing nearly 40% in a matter of days. The price of the Axie Infinity (AXS) token has surged by nearly 40% in three days. AXS rallied to over $65, its best level in more than two weeks, as Axie Infinity revealed a revamped rewardThis resurgence isn't due to mere market speculation; it's a direct result of proactive measures taken by the Axie Infinity team to address and avert a potential ""permanent economic collapse"" within its ecosystem. The price of the Axie Infinity (AXS) token has surged by nearly 40% in three days. AXS rallied to over $ 65, its best level in more than two weeks, as AxieThe price rally saw AXS jump to over $65, marking its best performance in more than two weeks.This impressive leap is fueled by the unveiling of a revamped reward structure focused on the player-vs-player (PVP) competition round and a significant overhaul designed to curb the over-issuance of Smooth Love Potion (SLP) tokens.In essence, Axie Infinity is actively working to rebalance its in-game economy and instill renewed confidence in both players and investors. The price of the Axie Infinity (AXS) token has surged by nearly 40% in three days. AXS rallied to over $65, its best level in more than two weeks, as Axie Infinity revealed a revamped reward structure for its player-vs-player (PVP) competition round.This article dives deep into the factors driving this AXS price surge, the details of the economic revamp, and what it means for the future of Axie Infinity and the broader play-to-earn landscape.

Understanding the Axie Infinity Economy and Its Challenges

Axie Infinity operates on a dual-token system, with AXS serving as the governance token and Smooth Love Potion (SLP) as the in-game currency earned through gameplay.AXS holders can participate in governance decisions, stake their tokens for rewards, and use them to purchase Axies (the game's digital pets) from the marketplace. Economic revamp boosts AXS demand. AXS serves as a governance token for the Axie Infinity protocol. Additionally, it acts as a legal tender to purchase in-game nonfungible tokens (NFTs) more or less unique digital pets called Axies from the Axie marketplace. Finally, players also use AXS to breed new Axies using the existing onesSLP, on the other hand, is primarily used to breed new Axies, a core mechanic of the game.The initial model heavily relied on the continuous creation of SLP tokens to incentivize players, leading to a significant supply glut and a corresponding decline in its value.

The core mechanic in Axie Infinity is earning SLP. Axie Infinity's governance token, axs, surged more than 40% after the leading NFT game said it's bringing in updates to eliminate two ways people can create play-to-earn tokens.The game economy was originally designed to reward players with SLP, which could then be used to breed more Axies.This breeding process requires both SLP and AXS. After announcing the season 20 update, the price of the Axie Infinity (AXS) token has surged by nearly 40% in 7 days. AXS rallied to over $70, its best level in more than two weeks, with a trading volume of approximately $1.4 billion.The problem was that more SLP was being generated than burned, leading to inflation and a decrease in the value of SLP.

This inflationary pressure on SLP had several negative consequences:

Decreased Earning Potential: Players found it increasingly difficult to earn a sustainable income through gameplay.
Diminished Axie Value: The value of Axies themselves began to decline as the cost of breeding (in SLP terms) became less significant.
Economic Instability: The overall health of the Axie Infinity economy was threatened, raising concerns about its long-term viability.

The Revamped Reward Structure: Season 20 and Beyond

Recognizing the urgent need for intervention, the Axie Infinity team implemented significant changes, starting with the Season 20 update.This update aimed to address the oversupply of SLP by reducing its creation through specific gameplay mechanics.The primary focus was to drastically cut the amount of SLP entering the ecosystem, while simultaneously incentivizing players to burn SLP through breeding and other in-game activities.

Key Changes in Season 20:

Reduced SLP Emission: The update effectively slashed the creation of SLP tokens by an estimated 56%.This was achieved by removing SLP rewards from Adventure mode and daily quests, focusing SLP rewards on the PVP arena.
Increased PVP Rewards: The game expanded the number of leaderboard slots for the PVP competition, meaning more players could earn AXS tokens based on their ranking. Axie Infinity token AXS gains 40% after taking steps to avoid permanent economic collapseThis motivates players to engage more strategically and compete at a higher level, potentially creating more demand for competitive Axies.
AXS as a Reward Mechanism: The distribution of AXS as a reward for top-performing players in the PVP arena provides a direct incentive to participate and compete.This helps to balance the tokenomics and encourages a more competitive ecosystem.

By concentrating SLP rewards within the PVP arena and reducing overall emission, the Axie Infinity team aimed to create a more balanced and sustainable economy.This shift encouraged players to compete and improve their skills, as opposed to relying on less engaging, repetitive tasks for SLP generation.

How the Economic Revamp Boosts AXS Demand

The reduction in SLP supply and the enhanced rewards for PVP performance have a direct impact on the demand for AXS.Here's how:

Increased Breeding Activity: As SLP becomes scarcer and more valuable, the cost of breeding Axies (which requires both AXS and SLP) effectively increases.This encourages players to be more selective about which Axies they breed, leading to a higher demand for Axies with desirable traits and abilities.Since AXS is needed for breeding, the demand for AXS is also boosted.
Enhanced Axie Value: The increased scarcity of SLP, combined with the enhanced rewards for PVP performance, makes Axies more valuable.As a result of this increased value, more users might be interested in using AXS to buy Axies.
Governance Participation: The rise in AXS price encourages more holders to participate in governance decisions. Simply put, the Season 20 update would make SLP scarcer, thus potentially making Axies more valuable. Therefore, in a perfect scenario, it could have Axie Infinity gain traction among gamers and crypto supporters alike, theoretically raising demand for its AXS token. That somewhat explains why the AXS price rallied by over 40% after AxieA healthier economy and a more engaged community contribute to the long-term stability and success of the Axie Infinity project.
Investment Attraction: The positive price movement and the proactive measures taken to address economic challenges attract new investors to the AXS token. Skip to main content Bitcoin Insider. MenuThis influx of capital further strengthens the ecosystem and fuels further development.

In essence, the Season 20 update aimed to create a virtuous cycle: reduced SLP emission leads to increased SLP value, which incentivizes strategic breeding and enhances Axie value, ultimately driving demand for AXS.This, in turn, supports the long-term sustainability of the Axie Infinity economy.

The Impact on Smooth Love Potion (SLP)

The changes implemented by Axie Infinity are designed to make SLP scarcer, potentially increasing its value. The value of the Axie Infinity (AXS) token has surged by almost 40% in three days. AXS rallied to over $65, its finest stage in additional than two weeks, asThe primary goal is to create a situation where the burning of SLP (through breeding) matches or exceeds the creation of new SLP.A healthy burn rate will lead to a more stable and potentially appreciating SLP value. Axie Infinity token AXS gains 40% after taking steps to avoid permanent economic collapse Source: CointelegraphPublished on . .This has a direct positive effect on player earnings and overall confidence in the Axie Infinity ecosystem.

The reduction of SLP rewards from Adventure Mode and Daily Quests was a strategic move to decrease the overall supply.By shifting the focus to PVP, the Axie Infinity team is incentivizing competitive gameplay and rewarding skill, rather than simply rewarding time spent grinding through repetitive tasks.

Analyzing the 40% AXS Price Surge

The 40% surge in the AXS token price is a clear indication of the market's positive reaction to the economic revamp. The price of the Axie Infinity (AXS) token has surged by nearly 40% in three days. AXS rallied to over $65, its best level in more than two weeks, as Axie Infinity revealed a revamped Axie Infinity token AXS gains 40% after taking steps to avoid 'permanent economic collapse'Several factors contributed to this price movement:

Market Confidence: The proactive measures taken by the Axie Infinity team instilled confidence in investors, signaling that the project is actively addressing its economic challenges.
Increased Demand: The reduced SLP supply and the enhanced PVP rewards led to increased demand for AXS, driving up its price.
Positive Sentiment: The news of the revamp and the subsequent price surge generated positive sentiment within the crypto community, attracting new investors and traders to the AXS token.
Trading Volume: The surge in price was accompanied by a significant increase in trading volume, indicating strong buying pressure. The price of the Axie Infinity (AXS) token has surged by nearly 40% in three days. AXS rallied to over $65, its best level in more than two weeks, as Axie Infinity revealed a revamped reward structure for its player-vs-player (PVP) competition round. In detail, the play-to-earn startup expanded its number of leaderboard slots toTrading volume hit approximately $1.4 billion during this period.

The price surge reflects a renewed belief in the long-term potential of Axie Infinity and its ability to adapt to the challenges of a dynamic market.It also demonstrates the importance of proactive economic management in play-to-earn games.

Long-Term Implications for Axie Infinity

The economic revamp and the subsequent price surge have significant long-term implications for Axie Infinity. AXS rallied to over $65, its best level in more than two weeks, as Axie Infinity revealed a revamped reward structure for its player-vs-player (PVP) competition round.These changes, while potentially painful in the short term for some players accustomed to the older system, aim to create a more sustainable and rewarding ecosystem for all participants. 2.3M subscribers in the ethtrader community. Welcome to /r/EthTrader, a 100% community driven sub. Here you can discuss Ethereum news, memesThe long-term sustainability of the ecosystem, now more focused on skill-based rewards and a balanced token economy, can ensure the project’s survival.By creating a more stable and predictable economic model, Axie Infinity can attract and retain a larger player base, leading to increased adoption and growth.

Potential Future Developments:

Further Refinements to the Tokenomics: The Axie Infinity team may continue to refine the tokenomics model based on real-world data and feedback from the community.
New Gameplay Mechanics: The introduction of new gameplay mechanics could create additional sinks for SLP and further incentivize strategic breeding.
Partnerships and Integrations: Collaborations with other projects and platforms could expand the utility of AXS and SLP and increase their overall value.
Expansion of the Axie Infinity Universe: The development of new games and experiences within the Axie Infinity universe could create new opportunities for players to earn and spend SLP and AXS.

The Broader Play-to-Earn Landscape

Axie Infinity's experience provides valuable lessons for the broader play-to-earn landscape. The leading NFT game announced an update that would effectively slash the creation of its native Smooth Love Potion tokens by 56%.The challenges faced by Axie Infinity highlight the importance of carefully designing and managing in-game economies to ensure sustainability and prevent inflation.Successful play-to-earn games must strike a delicate balance between rewarding players for their time and effort and preserving the value of in-game assets.

Here are some key takeaways for developers of play-to-earn games:

Prioritize Sustainable Tokenomics: Design tokenomics models that are resistant to inflation and that incentivize long-term participation.
Balance Earning and Burning Mechanisms: Ensure that there are sufficient sinks for in-game currencies to offset the creation of new tokens.
Focus on Engaging Gameplay: Create games that are fun and rewarding to play, regardless of the earning potential.
Foster a Strong Community: Build a community that is actively involved in the development and governance of the game.
Adapt and Evolve: Be prepared to adapt to changing market conditions and to refine the game's mechanics based on feedback from the community.

Investing in AXS: What to Consider

Investing in AXS, like any cryptocurrency investment, carries inherent risks.While the recent price surge is encouraging, it's essential to conduct thorough research and consider the following factors before investing:

Market Volatility: The cryptocurrency market is notoriously volatile, and the price of AXS can fluctuate significantly.
Competition: The play-to-earn gaming landscape is becoming increasingly competitive, and new projects are constantly emerging.
Regulatory Risks: The regulatory environment for cryptocurrencies and play-to-earn games is still evolving, and changes in regulations could impact the value of AXS.
Project Execution: The success of Axie Infinity depends on the ability of the team to execute its roadmap and to continue to innovate and adapt to changing market conditions.

Before investing in AXS, it's crucial to understand the risks involved and to only invest what you can afford to lose.Diversifying your portfolio and consulting with a financial advisor are always recommended. The price of the Axie Infinity token has surged by nearly 40% in three days.AXS rallied to over $65, its best level in more than two weeks, as Axie Infinity revealed a revamped reward structure for its player-vs-player (PVP) competition round.Buy, sell, and trade with caution and conduct your own research.

Common Questions About AXS and Axie Infinity

Here are some frequently asked questions about AXS and Axie Infinity:

What is Axie Infinity?

Axie Infinity is a blockchain-based game where players collect, breed, raise, battle, and trade digital creatures called Axies, which are represented as NFTs.

What is AXS used for?

AXS is the governance token of Axie Infinity. Axie Infinity token AXS gains 40% after taking steps to avoid permanent economic collapse Buy, Sell, Trade Bitcoin with Credit Card 100 Cryptocurrencies @ BEST rates from multiple sources, Wallet-to-Wallet, Non-Custodial!Holders can use it to participate in governance decisions, stake it for rewards, and use it to purchase Axies and other in-game items.

What is SLP used for?

SLP is an in-game currency earned through gameplay and used primarily to breed new Axies.

How can I earn AXS?

Players can earn AXS through various means, including participating in PVP battles, completing quests, and staking their AXS tokens.

Is Axie Infinity still profitable?

The profitability of Axie Infinity depends on various factors, including the price of AXS and SLP, the cost of breeding Axies, and the player's skill level.The recent economic revamp aims to make the game more profitable for skilled players who actively participate in the ecosystem.

Where can I buy AXS?

AXS is available on major cryptocurrency exchanges, including Binance, Coinbase, and Kraken.

Conclusion: A Path Towards Sustainable Growth

The recent 40% surge in the Axie Infinity token (AXS) price is a positive sign, reflecting the market's confidence in the project's efforts to address its economic challenges. Axie Infinity token AXS gains 40% after taking steps to avoid permanent economic collapse The price of the Axie Infinity (AXS) token has surged by nearlyThe revamped reward structure, focused on reducing SLP emission and incentivizing PVP performance, appears to be having a positive impact on the ecosystem.While the long-term success of Axie Infinity is not guaranteed, the proactive measures taken by the team demonstrate a commitment to building a sustainable and rewarding play-to-earn experience. BTCUSD Bitcoin Axie Infinity token AXS gains 40% after taking steps to avoid 'permanent economic collapse'The future of Axie Infinity, and indeed the broader play-to-earn landscape, hinges on the ability to balance economic incentives with engaging gameplay and a strong community.Keep a close watch on the project's progress and continue to do your own research before making any investment decisions.The steps taken to avoid ""permanent economic collapse"" may very well pave the way for a renewed and vibrant Axie Infinity universe.