Axie Infinity’s Small Love Potion (SLP) Price Surges Over 2,000% in a Week
Something very interesting is happening at the intersection of blockchain gaming and decentralized finance (DeFi).
Small Love Potion (SLP), a utility token used in Sky Mavis’s popular blockchain game Axie Infinity, has surged in price recently and is now up around 2,300% in the past week.
SLP is an ERC-20 token that players can earn by winning battles in Axie Infinity. They can be used to breed new Axies, which can be used to earn additional Love Potions or sold on NFT marketplaces like OpenSea.
The price per SLP now stands at roughly $0.09, bringing the token’s market cap to roughly $364K — an impressive achievement for an in-game token.
This is the future of player-driven economies unfolding right before your eyes.
Information asymmetry in the blockchain space is at all-time highs.
— The Jiho (@Jihoz_Axie) January 13, 2020
The recent gains are likely the result of the growing popularity of decentralized finance (DeFi) and yield farming, as SLP holders can provide liquidity on Uniswap and receive a percentage of the transaction fees. This is one of the few opportunities to provide liquidity for an in-game token market and speculators may have moved to secure positions in the token before excitement around the game takes off.
This may not be a terrible bet. Unlike many blockchain games that have become all but unplayable due to high fees on the Ethereum network, Axie Infinity’s PvP and PvE battles don’t rely on blockchain transactions. The game’s other mechanics that require gas, including the transfer of SLP, should be vastly improved by the game’s recently announced dedicated Ethereum (ETH) sidechain, Ronin, once it is released.
Sky Mavis claims Ronin will bring fast and seamless transactions with near-instant confirmation times, low gas fees that are returned to the community (not miners), simplified onboarding and eventually, an easy-to-use bridge to the Ethereum mainnet.
“Though it’s still in an early state, Ronin will continuously evolve over the years to serve the spirit and ethos of blockchain gaming,” said Sky Mavis CEO Trung. “On the technical side, we are also looking into various solutions to further strengthen and scale Ronin. zKSyncs, for example, is looking promising, but it could take time until it’s production-ready — particularly for NFTs and games.”
While the game’s breeders may not be pleased by the increased price of SLP, it does bring the game one step closer to a being viable play-to-earn option, where gamers can earn a living playing a video game by selling the fruits of their labor.
You can download the Axie Infinity alpha here.
Disclaimer: This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.