Smooth Love Potion (SLP) crypto up over 60% in 14 days. Is it a good investment?

April 04, 2022 07:59 PM PDT | By Priyabrata Prusty

Smooth Love Potion (SLP) crypto up over 60% in 14 days. Is it a good investment? — Image source: © 777ers | Megapixl.com

Highlight:

Trading volume in SLP crypto is up by 101% to US$1.7 billion in the last 24 hours.

This is 11.14 times its market capitalisation of over US$151 million.

SLP is one of the few in-game tokens to be listed in Binance's Innovative Zone, a category reserved for highly volatile and risky assets.

The Smooth Love Potion (SLP) token, which is earned by playing the Axie Infinity game, is on a tear. SLP crypto is up nearly 20% in the last 24 hours and over the last 14 days, this ERC-20-based token is up by 62%, according to data available on CoinMarketCap. At the time of drafting, SLP crypto was trading at US$0.02806, up by 21%.

What is worth paying attention here is that today's rise in SLP crypto is accompanied by a 101% jump in its trading volume to US$1.7 billion, which is 11.14 times its market capitalisation of over US$151 million. In order to understand SLP’s price action, you need to first understand what Smooth Love Potion is.

What is Smooth Love Potion (SLP)?

For the uninitiated, the SLP token serves as a replacement for experience points in the Axie Infinity game. This ERC-20 token is used to breed Axies or new digital pets in the game. One needs a minimum of 100 SLPs to breed one Axie. But this cost keeps on rising for subsequent breeds. For example, you need 200 SLPs for the second breed and 300 SLPs for the third. But the fourth, fifth and sixth breeds will cost you 500, 800 and 1,300 SLPs, respectively.

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Worth mentioning here is that one can breed Axies for a maximum of seven times and the seventh breed will cost you 2,100 SLPs. A player can get SLPs by winning competitions or by directly purchasing them from the market. In order to gain enough tokens to perform the first breed, one needs to win 15 competitions. So, to get a headstart, gamers can buy SLPs from the open market.

One can buy, sell and trade this gaming token on exchanges like Binance, KuCoin, Gate.io, FTX, Gemini, OKEx, Uniswap (V3) and SushiSwap.

What is special about SLP is that it is one of the few in-game currencies to be listed on crypto exchanges. Worth mentioning here is that SLP is one of the few in-game tokens to be listed in Binance's Innovative Zone, a category reserved for highly volatile and risky assets.

Why is SLP token considered highly risky?

The circulation of the SLP token is not fixed. If the number of players in the Axie Infinity ecosystem increases, the circulation of SLP tokens also rises as more competitions are won and lost. Hence, the price of SLP depends on the number of players in the Axie Infiniti ecosystem. As the popularity of the game increases, the supply of the token also increases, hence the price of the token falls.

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In the past, SLP’s price has witnessed extreme fluctuations in a short period. This means SLP could cause serious losses. According to data available on CoinMarketCap, SLP crypto touched an all-time high of US$0.4191 on 1 May 2021 and then fell by almost 80% to an all-time low of US$0.008795 on 3 February 2022. And now, in the last two months, SLP has recovered by over 200% from its all-time low. At present, the circulating supply of the SLP token is 5.4 billion.

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