Many suspect OpenSea will eventually take this route as well. We’re also seeing NFT markets begin to decentralize themselves, with NFT art marketplace Super Rare making the first move with the introduction of its RARE governance token. The DEX market for NFTs is still nascent but one we’re watching is the recently launched Punks.house which is a permissionless venue for trading CryptoPunks made by Zora. This follows past market cycles in which centralized exchanges found product market fit first, before ultimately paving the way for decentralized alternatives (think Uniswap during the DeFi summer). Notably absent from this exchange landscape are any kind of decentralized venues for trading NFTs. OpenSea’s August volume is on par with $3B in gross sales Etsy put up in all of Q2: another sign of just how big the NFT market has grown relative to other online marketplaces in a very short timespan.ĭata from The Block shows how dominant OpenSea’s dominance over the NFT landscape really is. Its August volume alone exceeds that of every other month in its history, combined. In the month of August, NFT exchange OpenSea hit $3B in monthly volume as over 1.5 million NFTs changed hands. They must also offset the number of players seeking to extract a profit with players who are pure consumers - i.e. Ultimately, Sky Mavis has to keep the SLP supply in-check while improving overall gameplay to keep its player economy and ETH deposits growing. These dynamics could have an impact on NFT market prices, which in turn may have a direct effect on the economics for players - a possible negative feedback loop. And since breeding is priced in SLP, additional supply of SLP equates to cheaper breeding fees to create new Axie NFTs, inflating Axie NFT supply. Winning Axie Infinity battles and quests yields SLP, inflating the SLP supply. A powerful positive feedback loop no doubt - but what if market conditions change? With rising SLP prices, playing becomes more profitable, encouraging others to join.

Breeding requires fees paid in SLP & AXS, leading to a rise in token prices. Higher NFT prices have made breeding more profitable. Increased demand for Axie NFTs has led to rising Axie NFT prices. Just like a real economy, digital economies have to consider the effects of inflation.ĮTH has been flowing into the Axie economy due to high demand for Axie NFTs. Where the Fed has various tools it uses to influence the economy, Sky Mavis can adjust the SLP issuance rate and breeding fees with the aim of keeping the Axie economy healthy. If Axie Infinity is its own digital nation, game developer Sky Mavis serves as its Federal Reserve.

YGG has also made early stage investments across 8 play-to-earn games via SAFT (Simple Agreement for Future Tokens), and locked in ~$1M for yield farming in blue-chip DeFi projects.

Axie Infinity NFTs comprised close to 90% of that value. By the end of July, the YGG treasury had amassed 19,460 NFTs valued at over $10M across 12 play-to-earn games. Much of YGG’s capital has been put to work buying NFTs that can earn yield from play-to-earn games. The YGG token is part of Yield Guild Game’s plan to transition into a community-governed DAO.The price of YGG has tripled in August, meaning their treasury currently stands at over $1B.

They also raised $12.49M from the sale of the YGG governance token, while holding 13.3% of its outstanding supply.Īs of the end of July, the YGG wallet’s holdings stood at $415M, with the majority stemming from the YGG token ($373M). The project has been funded by a $1.325M seed round led by Delphi Digital and another $4.6M round from a16z. The YGG treasury consists of tokens and stablecoins held in a wallet, NFTs, and venture investments made in various play-to-earn games.

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