Axie Infinity was one of the star performers in the blockchain space in 2021, it has since fallen on hard times. Other cryptos have also suffered this year, but none have suffered a drop as severe as Axie Infinity.

Sky Mavis has had a rough year so far and things do not appear to be getting any better for the play-to-earn platform. The AXS token price has been in a freefall for months now and things do not appear to be improving any time soon.

Axie Infinity’s low player count has dampened demand for the in-game asset that powers the game’s virtual economy, causing its price to plummet to less than a tenth of its peak value. Back in November 2021, one AXS token was worth P8,780; today it trades at just ₱698 after dropping another 15.3% in the last 24 hours. $SLP value also dipped to P0.19 at the time of writing, a decrease of -99.09% from its June 2021 peak of P21.

The platform has been struggling to keep the number of its daily active users up for a while and things do not appear to be improving on that front either. Axie Infinity dropped from 2.7M peak users down to 588,087 on June 6, 2022.

At the same time, its in-platform volume has plunged from $300 million in September 2021 to a mere $2.12 million in June 2022. This string of bad news, including the infamous $625M Ronin Hack, sent prices tumbling and led to some of the game’s players calling it quits. Investor confidence has waned and the prices have reflected that. This has left the remaining users in danger of recouping their investments in the game’s digital pets, which are valued at a mere P160 per Axie, when some investors had spent over P120,000 for a team of 3 Axies back in mid-2021.

In an interview with Bloomberg, Jeffrey “Jihoz” Zirlin said he empathized with people who’d lost money—life-changing sums, in some instances. But he explained that a crash that got rid of Axie profiteers could have its upside, too. “Sometimes having to flush out the people who are just in it for the money,” he said, “that’s just the system self-correcting.” While there had been setbacks, he remains upbeat about the company’s prospects and is convinced that the Axie community has faith in what they are trying to do.

Axie Infinity still has some hope for a rebound in 2022. The play-to-earn market is still relatively new and volatile, so it’s difficult to predict what will happen in the future. It helps that Axie still has an active community and a lot of positive momentum behind it. This could help it rebound in the coming months and years.