In the past 24 hours there’s been a run on Small Love Potions from the blockchain-powered battle game Axie Infinity. The value of the utility token SLP increased more than 1377 percent in the past 24 hours, surpassing a price of 6 cents per potion. Game company Sky Mavis hasn’t announced any news in regards to their game or the SLP token.
Compared with 17 days ago the value of the token increased a tremendous 1790 percent. It was $0.0031 on June 20th, and it hit $0.061 on July 7th. The overwhelming majority of the trades take place on Uniswap. Despite the sudden growth in trading volume for Small Love Potions, it’s not reflected in the price of an Axie.
Players earn SLP while playing the game, winning battles and completing quests. They can use 100 Small Love Potions to breed a new Axie creature. At the highest price so far, that would be $6.10 per Axie, and you need at least three to be able to play the game. In addition there are gas fees, and the person breeding wants to make a profit as well.
Currently there are 1204 cryptocurrency addresses holding the SLP token. The Uniswap exchange itself is the biggest holder with 138 thousand SLP, which is 4.4 percent of the total current supply. The second biggest holder is a new player in the market, who just opened a wallet one day ago. This person now holds 3.6 percent of the total supply, which is 113 thousand SLP.
Once this price for SLP is reflected in the price of a new Axie, Sky Mavis could have a problem. Suddenly it would require new players at least 18 or 19 dollars to start playing their game. Thankfully the developers are working on solutions to ease to user experience. They are making a sidechain for cheaper and faster transactions, while also considering a system to introduce new players into the game much smoother. In addition they will soon introduce land into the game, while working with Ubisoft to appeal to a mass audience.