Where the hell did the $ 5 billion capitalization come from then? Either I don't understand something or the world is going crazy.
It is because of their AXS governance token with a maximum supply of only 270M
[1] and a massive influx
[2] of players getting into the game which makes the price to remain bullish. Currently, about 60 million AXS are in circulation, with the majority of the supply (22.22 percent of total supply) coming from their public token sale and in-game incentives (reaching the top of the leaderboard)
[3]. If the Mavis Team releases the
play-to-earn and
staking rewards for its players and investors, the remaining AXS will be released somewhere in between this quarter until year 2026.
Also, the
breeding process in Axie Infinity is crucial, particularly in terms of the AXS treasury. Axie Infinity included a breeding mechanism to generate new axies that may be utilized for fighting, breeding other offspring, and as a marketable item. The AXS that is being used in the breeding process goes to the community treasury
[4] where it is later used for the governance functionalities of AXS.
Early 2021, the Community Treasury will go live. The treasury will hold revenue generated by Axie Infinity, as well as a portion of staking rewards. The treasury will be governed by AXS stakers, once the network has been sufficiently decentralized.
For now, there is a 4.25% marketplace fee as well as a fee of 2 AXS for breeding Axies that goes into the Community Treasury.
Furthermore, an increasing number of exchange listing for AXS could also drive the price up for AXS token, which is a no brainer why this token just keeps going up. More exchanges could also means more accessibility for trading.
Additional read for ya'
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https://www.axieworld.com/en/economics/charts?chart=volume-
https://axie.substack.com/-
https://whitepaper.axieinfinity.com/axs