The cryptoverse was left aghast last week when it was disclosed that the Ronin Network of popular play-to-earn game, Axie Infinity, was breached. The hackers looted $625 million – one of the biggest heists in crypto history.
Just days after the hack was reported, on-chain data shows that the number of Axie Infinity’s daily active users has dropped to just 45% of its all-time high recorded in November 2021.
Gamers Have Been Leaving Axie Infinity
According to the data provided by Sky Mavis, the creators of Axie Infinity, on March 28th, the game had 1.48 million daily active users – 45% less than the number the game hit in November 2021.
The decline in daily active users appears to have started in December when updates to the game were announced. However, the situation has worsened following the hack.
Daily active users of Axie Infinity.
According to reports, gamers faced reduced rewards after certain updates, with some others facing challenges when attempting to withdraw funds, all of which has contributed to wilting interest in the game. Martin Lee, a data journalist at Nansen, wrote:
“Daily earnings dropped, and so did interest in the game. Those that bought in at the highs started to feel fearful and naturally doubt creeped in.”
Not only has the number of daily active Axie infinity users been steadily declining, but its native token, AXS, has also been on the back foot.
On the Flipside
- Between December, when the update was announced, and January 10th, AXS lost more than 50% of its value.
Why You Should Care
By all indications, the hack only served to escalate an already brewing problem withing Axie Infinity, which could lead to the end of the play-to-earn game.