The price of the smooth love potion token (SLP) used in the Axie Infinity gaming metaverse has plunged by more than 80% from its May peak.
What is smooth love potion and how does it work? Do forecasts suggest the SLP crypto price will rebound in the future, or will it continue to shed value?
See more: Axie infinity slp price prediction
In this article, we look at the project’s recent developments, latest SLP coin news and some of the price projections for years ahead.
SLP forms Axie Infinity play-to-earn economy
The smooth love potion coin, previously known as ‘small love potion’, is a utility token that players in the Pokémon-inspired Axie Infinity universe can earn as rewards for gameplay. Axie Infinity is built on the Ethereum blockchain, and SLP is an ERC-20 token. Players can use SLP to breed digital pets called Axies, which are non-fungible tokens (NFTs) that they can sell to other players in the Axie Infinity Marketplace. New players need to buy Axies to join the game. There is no cap on the supply of SLP tokens.
In its white paper, Axie Infinity wrote:
The blockchain-based design enables Axie to reward players for their contributions to the ecosystem, which it‘s dubbed the “play to earn” model. “Axie has attracted thousands of players from developing countries in the pursuit of a new income stream during the Covid pandemic,” according to the white paper.
The rapid growth in the popularity of the game has created a ‘scholarship’ model, in which ’managers’ rent out their Axies to ‘scholars’, who use them to earn income.
Axie Infinity is open source, so the art and Axie genetic data is accessible to third parties to build their own experiences.
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Launched in 2018 by game studio Sky Mavis, Axie Infinity has surpassed CryptoPunks, one of the first major NFT collections that launched in 2017, with a total traded volume of more than $2.84bn, compared with $1.56bn for CryptoKitties, according to DappRadar.
The SLP cryptocurrency price hovered between $0.0095 and $0.01 from July 2020 until the end of April 2021. It then rapidly spiked to a high of $0.4191 on 1 May, before dropping back to $0.1477 on 12 May.
Volatility increased as the price bounced and slipped back twice more in May. SLP traded down to $0.011 in June and then rallied to $0.4088 in July. The price has since dropped, falling to $0.0553 on 21 September and trading between $0.05 and $0.10 in October. At the time of writing (5 November), the coin was trading at $0.0902.
On 23 September, developers adjusted the Axie breeding fee, reducing the AXS cost from two to one and increasing the SLP cost on a scale of 600 SLPs to breed one Axie, up to 6,300 SLPs for six Axies. According to the Axie Infinity blog, the fee was adjusted in response to a slowdown in growth because of concerns over an imbalance in the rate that SLP tokens were being minted and burned daily, large fluctuations in the breeding fee caused by volatility in the AXS and smooth love potion value, and the rise in AXS to 80% of the breeding fee, “which has taken away from SLP’s utility within our economy.”
The post explained: “Many players that are new to Axie have expectations of the in-game economy that are unrealistic and would not be conducive to long-term growth. Thanks in advance for your understanding as we learn together how to balance the economy in both the short and long-term.
Long-term sustainability of the SLP Axie economy will depend on future growth in new players joining Axie Infinity, new demand for Axies and sponsorship from third parties to subsidise the play-to-earn model.
Sky Mavis is developing a decentralised exchange (DEX) on Ronin, an Ethereum-linked sidechain for Axie Infinity, that will allow players to avoid having to pay gas fees to process transactions on the Ethereum blockchain. They are also developing a new battle system that will introduce a demo of the Axie Infinity game before making economic decisions.
The developers said: “Our growth projections for 2022 suggest that we will require tens of millions of Axies for the future on-boarding rush that we expect with the launch of our Ronin Dex and Battles V2. Historically, whenever we’ve launched features that have reduced friction and increased utility for Axies, we’ve seen a surge of breeding to account for the increased demand from Axies, from both new players and veterans alike.
The developers are looking at ways to outsource the management of the Axie Infinity economy “either to intelligent machines or informed members of the Axie community.
So, what do some forecasters predict for the future of the SLP token price?
SLP coin price prediction: will the token price rebound?
Technical SLP price analysis from CoinCodex was bearish with the price of $0.089243 at the time of writing (5 November). There were 3 oscillator indicators giving neutral signals, and 12 bearish and 12 bullish signals leaving a neutral sentiment According to CoinCodex’s smooth love potion price prediction, the token could drop to $0.105268 by 12 November.
The algorithm-based SLP crypto prediction from Wallet Investor projected that the price could continue to decline, dropping from the current $0.07 level to average $0.00864 by the end of the year. It expected the price to remain at the lower level in 2022 and average $0.00847 at the close of December 2022. By the end of 2025, the site predicts SLP could slip back to trade around $0.00244.
In the meantime, the SLP price prediction from DigitalCoin was bullish on the long-term outlook based on historical data, estimating that the token could average $0.157 in 2022, up from $0.131 in 2021 and climb to $0.276 by 2025. Looking further ahead, the forecasting site predicted that the SLP price could average $0.417 in 2028, with a peak at $0.441.
PricePrediction’s SLP forecast was also bullish for the long-term, projecting that the price could average $0.48 in 2022 from $0.34 in 2021, climbing to an average of $1.44 in 2025 and $9.9 in 2030.
It’s important to keep in mind that cryptocurrency markets remain extremely volatile, making it difficult to accurately predict what a coin’s price will be in a few hours, and even harder to give long-term estimates. As such, analysts can and do get their predictions nftgamef.com recommend that you always do your own research, and consider the latest market trends, news, technical and fundamental analysis, and expert opinion before making any investment decision. And never invest more than you can afford to nftgamef.comow nftgamef.com to stay on top of the market’s latest news.