Axie Infinity’s SLP token rose 300% in February due to the recent announcement of the Season 20 launch. Axie Infinity is one of the most popular play-to-earn games, and this has skyrocketed the price of Axie tokens. But due to this reason, the main focus of the developers has shifted away from SLP, which is a game token. Due to the unlimited fast supply of SLP, the price kept going down. But as the team confirmed that they would reduce the supply of the SLP token, its downtrend broke.
Axie Infinity’s SLP token
SLP token is the game reward token in the Axie Infinity game. In the game, players can combat, buy, sell their “Axies,” and earn rewards on SLP that can be redeemed for various features. Due to the high popularity of the game and the vast supply of SLP, the price fell more than 80% in the past few months. It was clear that no one is interested in owning a token that has such a vast increasing supply.
So, the only way to combat this was to make the supply of SLP go down by burning or at the least try to constrict its new supply. The latter will happen with the new Season 20 update, and there will be a 56% reduction in the daily supply of SLP tokens. And further, the game will be tweaked in ways that won’t reward SLP in certain modes like an adventure. All this is going to reduce the supply of the token.
SLP could have a good future
Axie’s popularity as a game makes sure that SLP will continue to be an important part of the game. And since the developers have also tackled the daily supply of the token, the price increase could continue. It was also added to Binance in the SLP/BNB pair, which will also increase the trading of the token. In the future, if developers implement burning the SLP token, then there would be no stopping of its price increase.
What are your thoughts as Axie Infinity’s SLP token rose 300% in February after the Season 20 announcement? And do you think this is just a temporary pump due to the hype? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
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