AXS and SLP. Why the price of SLP is falling but AXS is rising?

[MusaMohamed]

Axie Infinity is a very hot coin in NFT game and it grows from less than $1 to $150. SLP is a part of Axie Infinity ecosystem but price of SLP is falling.

Explained: Axie Infinity SLP and AXS tokens.
Because the SLP will be created more if the ecosystem of Axie Infinity has more players. If the Axie Infinity team take care of investors who buy SLP, they need to have plan to reduce the inflation of SLP.

If the team don't make changes with SLP release rate, the value of this token will hardly to rise.

Any thoughts about SLP everybody?

https://coinmarketcap.com/currencies/axie-infinity/
https://coinmarketcap.com/currencies/smooth-love-potion/

[DapanasFruit]

In my own myopic view as just an observer and not really a gamer of any P2E network, I would agree that the main factor why there is that tendency for a token generated by the people using the platform to go down in value especially if the general market is also down. And yes, it has something to do with inflation...the very people who first are buying the tokens to get in are producing the tokens which they are selling of course to make money. Now, there can be good strategies to combat this inflation so maybe burning can be done regularly so the circulating supply can be lessened. Inflation is the Achilles' heel of any play-to-earn network not unless there are many other use-cases for the token and not just for anyone to get in. I think we need a gaming platform that is integrated into other components of the same platform and all components are using the same token.

[tabas]

They need a burning feature so that more SLPs will be used and burned because there's always more in the minting side that they do EVERYDAY. This isn't healthy. People are very optimistic on the game and I also think the game is good and very rewarding but they should act on it as soon as possible. I think the devs have already addressed this and their one solution to it is the Ronin DEX. But we'll still see how it's going to work because what everyone is speculating about once the ronin dex is out.
It's going to be this.
SLP > Ronin DEX > AXS > AXS stake.

[makishart]

If the team don't make changes with SLP release rate, the value of this token will hardly to rise.

Any thoughts about SLP everybody?

The team has been doing various ways to increase the burn rate rather than issuance but the problem is more and more people grinding SLP. You can see the complete chart here
https://www.axieworld.com/en/economics/charts?chart=slpIssuance

more than 110 millions SLP already minted. that was also going to the circulating supply instantly. This will become a long term problem that will never be solved. Increasing the breeding fees was not the solution. The breeding already increased three times and it gives no impact.

[rozak]

If the team don't make changes with SLP release rate, the value of this token will hardly to rise.

Any thoughts about SLP everybody?

The team has been doing various ways to increase the burn rate rather than issuance but the problem is more and more people grinding SLP. You can see the complete chart here
https://www.axieworld.com/en/economics/charts?chart=slpIssuance

more than 110 millions SLP already minted. that was also going to the circulating supply instantly. This will become a long term problem that will never be solved. Increasing the breeding fees was not the solution. The breeding already increased three times and it gives no impact.

breeding that has reached 3x and still no impact on SLP. but in the long term, it will have an impact. even that could be bad for SLP.
developers have to think of ways to prevent it and make it a better value in the market. although market control will not be fully implemented because adoption is also getting bigger.
but so far still safe with the trend following AXS. if left in the long run we will see something quite bad.

[uneng]

I believe the supply of SLPs distributed to players in every game's modes should be controlled proportionally to the demand on the currently time. So far we have adventure mode rewarding 50 SLPs daily, but in PVP mode the SLP rewards have no limits I think (with the exception of energies that are limited). If they limit rewards in PVP mode there will be less SLPs disponible in the market and then the price should rise.

Clearly the burning method and the exorbitant withdrawl fees aren't efficient enough to keep prices stable. SLP was pretty stable at 8 cents range, but now I see the price is crashing and I fear it's heading back to the old 2 or 3 cents range. Anyway it wouldn't be a problem at all if it wasn't for the absurd 45$-70$ fees to cashout money from Ronin to Metamask.

[dhemasm]

If the team don't make changes with SLP release rate, the value of this token will hardly to rise.

Any thoughts about SLP everybody?

I think the problem it's from Axie Mechanism, People who joining Axie was keep decreasing everytime and it's will creating an inflation as you said so beside doing some burning scheme or increasing the breed the fee Axie team must also creating an new game mechanism that cost SLP same like breeding, It's normal though that on every game there will be point where their native currency will be oversupply so it will be needed some update or anything like that.

[MusaMohamed]

I think the problem it's from Axie Mechanism, People who joining Axie was keep decreasing everytime and it's will creating an inflation as you said

Did you imply increasing? Because the increasing of gamers will cause inflation. The decreasing of gamers will give less inflation, but not deflation. Deflation only appears if the Axie Infinity do something.

so beside doing some burning scheme or increasing the breed the fee Axie team must also creating an new game mechanism that cost SLP same like breeding, It's normal though that on every game there will be point where their native currency will be oversupply so it will be needed some update or anything like that.

Creating new use cases for SLP and restrict the release rate of SLP in the future are good. It will be supported if the team do burn events for SLP.

We see how price of BNB and ETH rose when those projects have burn events. Buy back and burn are good too. Axie Infinity already got a lot of money from this project. Is it time for them to think of community and investors of SLP?

[makishart]

If the team don't make changes with SLP release rate, the value of this token will hardly to rise.

Any thoughts about SLP everybody?

The team has been doing various ways to increase the burn rate rather than issuance but the problem is more and more people grinding SLP. You can see the complete chart here
https://www.axieworld.com/en/economics/charts?chart=slpIssuance

more than 110 millions SLP already minted. that was also going to the circulating supply instantly. This will become a long term problem that will never be solved. Increasing the breeding fees was not the solution. The breeding already increased three times and it gives no impact.

breeding that has reached 3x and still no impact on SLP. but in the long term, it will have an impact.

There's no guarantee for this. When you're limiting people to grind and they may move to the new project that was offering better income from PTE than axie.

developers have to think of ways to prevent it and make it a better value in the market. although market control will not be fully implemented because adoption is also getting bigger.
but so far still safe with the trend following AXS. if left in the long run we will see something quite bad.

The developers have been trying various ways but again, more axies come to the market and more people are buying it everyday just for grinding SLP. AXS has limited supply while SLP didn't have it. both were not comparable as SLP was in game currency. SLP can't be considered as investment.

[livingfree]

I believe the supply of SLPs distributed to players in every game's modes should be controlled proportionally to the demand on the currently time.

They are actually controlling and that's why they've changed a lot with the distribution per quest, per adventure and per reward in the arena.

They all have the control on it and what they're trying to do is balancing the whole ecosystem of it because there's an infinite supply for SLP.

[asriloni]

SPL is easy to get and it keeps chunk out while AXS is hard to get hence the price is more rising.

There must be a big chance to decrease the inflation effectively. The problem was not about how difficult to get the token but limited supply was making AXS was more valuable rather than SLP. If SLP has limited supply and this will be making it to be another valuable token after AXS. The inflation rate was so high and it's 3x from the total burned SLP from breeding, and something else. People are also sending their SLP to the market directly as some exchange sites have been opening the gateway through ronin network and this was decreasing the transaction fees. A new mechanism for SLP must be introduced. This will be making SLP to be even better than this time.
multi millions USD will mean nothing if the total supply of SLP is still going so crazy right now. I'm always watching the growth of circulating supply of SLP and it's even faster than another coin like doge coin.

[uneng]

Today SLP is rising again hiting a maximum of 0,085$ and now dropping to 0,082$. Still a good price range for SLP considering how abundant it is the supply. But for me what kills SLP trading is this:



With such taxes it only worths to cashout SLPs few times a year. It's terrible, because these costs totally freeze trading opportunities. There might be a crash or a sudden rise in price and you can't sell, because it's necessary to pay 85$-90$ in fees just to send the potions to Metamask, what will fully compromises the profit to be made.

At same time I think it's on purpose, so the game controls the supply disponible in the market, keeping the prices more valuable and stable for a longer time.

[TastyChillySauce00]

With such taxes it only worths to cashout SLPs few times a year. It's terrible, because these costs totally freeze trading opportunities. There might be a crash or a sudden rise in price and you can't sell, because it's necessary to pay 85$-90$ in fees just to send the potions to Metamask, what will fully compromises the profit to be made.

Didn't you keep update with the latest news? Majority of people are withdrawing their SLP, AXS and WETH through ronin dex instead of converting it to be ERC20 asset. I rarely seen people were using ERC20 asset anymore. When you're withdrawing through ronin and it consumes 0 fees. Im always withdrawing my SLP through ronin to the binance. The fees was not relevant anymore to prevent the price of SLP to rise but inflation does it.

At same time I think it's on purpose, so the game controls the supply disponible in the market, keeping the prices more valuable and stable for a longer time.

The problem is inflation can be even higher than this time when more players coming only for grinding. There must be a very restriction to make people will be earning SLP when it reaches high level of AXIES.

[cryp24x]

Axie Infinity is a very hot coin in NFT game and it grows from less than $1 to $150. SLP is a part of Axie Infinity ecosystem but price of SLP is falling.

Explained: Axie Infinity SLP and AXS tokens.
Because the SLP will be created more if the ecosystem of Axie Infinity has more players. If the Axie Infinity team take care of investors who buy SLP, they need to have plan to reduce the inflation of SLP.

If the team don't make changes with SLP release rate, the value of this token will hardly to rise.

Any thoughts about SLP everybody?

https://coinmarketcap.com/currencies/axie-infinity/
https://coinmarketcap.com/currencies/smooth-love-potion/

Probably, the main reason why SLP is getting down its price in the market is that there is no burning happen to this coins. Where if the whale of SLP continue to sell their holdings surely the price value will definitely dump in the market. While AXS continue to increase its value maybe due to there is already burning happened to this coin, in which is the reason the price value of AXS got increased as well too in the market.

[uneng]

With such taxes it only worths to cashout SLPs few times a year. It's terrible, because these costs totally freeze trading opportunities. There might be a crash or a sudden rise in price and you can't sell, because it's necessary to pay 85$-90$ in fees just to send the potions to Metamask, what will fully compromises the profit to be made.

Didn't you keep update with the latest news? Majority of people are withdrawing their SLP, AXS and WETH through ronin dex instead of converting it to be ERC20 asset. I rarely seen people were using ERC20 asset anymore. When you're withdrawing through ronin and it consumes 0 fees. Im always withdrawing my SLP through ronin to the binance. The fees was not relevant anymore to prevent the price of SLP to rise but inflation does it.

I'm not familiar with this method yet. I still withdraw from Ronin to Metamask with huge intervals of time to dilute taxes. The another option I'm aware is that you can sell SLP through P2P transaction only using Ronin, what is risky. Actually I've been playing alone and don't have anybody else to chat and exchange some valuable informations like this one you mentioned, so unfortunatelly I'm behind in some aspects of the game.

Well, since there aren't any fees I'm going to check my Binance account to generate a SLP address and test this another method. Thanks for sharing.

The problem is inflation can be even higher than this time when more players coming only for grinding. There must be a very restriction to make people will be earning SLP when it reaches high level of AXIES.

It's hard to keep inflation under control. It seems the best they can do is to burn many SLPs as possible using different monetization sources to do so. Axie's developers could sell cosmetic items, physical products, create revenue from gambling tournaments and so on... This way part of the total profit would be used to control inflation.

But like in any other online multiplayer game there must be always something new (updates, items, scenarios, features), so people will never stop spending on it and there will be always a flux of money going in.

[LogitechMouse]

Because the SLP will be created more if the ecosystem of Axie Infinity has more players. If the Axie Infinity team take care of investors who buy SLP, they need to have plan to reduce the inflation of SLP.

If the team don't make changes with SLP release rate, the value of this token will hardly to rise.

Any thoughts about SLP everybody?

There is one way to reduce the inflation of SLP and that is to add more burning mechanisms.
Right now, its only breeding that is the way to burn SLP and the amount of minted SLP per day is very very high compare to the burned SLP. The normal ratio of Burned SLP to Minted SLP right now is at least 1:6 so for every 6M Minted SLP, 1M is burned and this isn't good for the economy because more supply, low demand prices will definitely go down.

Right now, many are waiting for the Ronin DEX which can be another way to burn SLP (at least that is what most is saying). I agree with you that the price of SLP will not rise if there are no changes on it like adding more burning mechanisms etc.

My thoughts about SLP? If you are an investor and not playing Axie then I suggest not to invest on SLP but to invest on AXS and stake it. Now if you are a axie player or breeder then just farm SLP and use it for breeding.

[dupee419]

Because the SLP will be created more if the ecosystem of Axie Infinity has more players. If the Axie Infinity team take care of investors who buy SLP, they need to have plan to reduce the inflation of SLP.

If the team don't make changes with SLP release rate, the value of this token will hardly to rise.

Any thoughts about SLP everybody?

There is one way to reduce the inflation of SLP and that is to add more burning mechanisms.
Right now, its only breeding that is the way to burn SLP and the amount of minted SLP per day is very very high compare to the burned SLP. The normal ratio of Burned SLP to Minted SLP right now is at least 1:6 so for every 6M Minted SLP, 1M is burned and this isn't good for the economy because more supply, low demand prices will definitely go down.

Right now, many are waiting for the Ronin DEX which can be another way to burn SLP (at least that is what most is saying). I agree with you that the price of SLP will not rise if there are no changes on it like adding more burning mechanisms etc.

My thoughts about SLP? If you are an investor and not playing Axie then I suggest not to invest on SLP but to invest on AXS and stake it. Now if you are a axie player or breeder then just farm SLP and use it for breeding.

True, it's actually better to invest on AXS rather than on SLP, though I think that SLP will still recover soon, however, it seems like investing on AXS will give you a much better profit, but as an axie player, it's better to hodl for the mean time.

[LUCKMCFLY]

In my opinion, user-generated platforms tend to drop in value, especially if the market as a whole goes down as well. It has to do with inflation, people in the game make money that they sell of course to make money. The token sale doesn't stop there in part due to the rather high reward of 200 SLP profits per day per player and the lack of a SLP burning plan to reduce inflation. This must be done quarterly so that the SLP price can rise again.

Almost player can earn more than 200 SLP every day and I think bad side to make price dump, exactly on other side the supply of SLP added few months ago, I think is not worth if try investing with SLP coin and AXS still worth and keep profitable because have less supply than SLP. Now the AXIE game still running with new member added and I think get impact with many SLP sold on every day, maybe they can give some offer like less reward giving for SLP coin and keep make burning for SLP supply.

You hit a very good point, I think that the moment people stop entering the game it will start to fall, but when we see the new updates they promise a lot, because not only will it have ARENA and Adventure, I also think that a new option like LAND Isla de Aventura, something like this will come out, and apparently this promises because that means that it will have more playing time for the players, if normally in sand they go 3 hours, in adventure half an hour or 1 hour, when they implement the new one it will be more hours, then it could be fulfilled that a player lasts 4 to 6 hours playing, which increases the fun more.

[Eureka_07]

Axie Infinity is a very hot coin in NFT game and it grows from less than $1 to $150. SLP is a part of Axie Infinity ecosystem but price of SLP is falling.

Explained: Axie Infinity SLP and AXS tokens.
Because the SLP will be created more if the ecosystem of Axie Infinity has more players. If the Axie Infinity team take care of investors who buy SLP, they need to have plan to reduce the inflation of SLP.

If the team don't make changes with SLP release rate, the value of this token will hardly to rise.

Any thoughts about SLP everybody?

https://coinmarketcap.com/currencies/axie-infinity/
https://coinmarketcap.com/currencies/smooth-love-potion/

They just made some adjustments tody. Players that are below 800 MMR won't be getting any SLP from all of the modes (PVE and PVP) as well as the daily quest. This is done so the game will become more competitive making the players to buy better team and compete with all they've got.
AXS has been rising since there is lower supply since lots of AXS token has been staked. In my opinion, expect slp to rise in the next coming days and weeks.

[Johnyz]

Simply because SLP is so fast to farm while AXS have no way to farm it before and the supply are quiet limited as far as I know. SLP produce millions of supply everyday considering the volume of players, so what we can expect if there’s too much supply and don’t have a faster way to burn it? Cheaper price. Hope that they can still address this problem before its too late, better to balanced the system.