What is Small Love Potion (SLP) crypto? Why is it gaining?

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 What is Small Love Potion (SLP) crypto? Why is it gaining?
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Summary

  • Small Love Potion (SLP) is an ERC-20 token that can be accessed on the blockchain-powered Axie Infinity ecosystem
  • Success of the SLP crypto can be attributed to the robust adoption of Axie Infinity gaming ecosystem
  • SLP farming is emerging as a lucrative means of earning among youngsters

Small Love Potion (SLP) is an ERC-20 token accessible on the blockchain-powered Axie Infinity platform earned as rewards by users through gameplay. It is used to breed new digital pets known as Axies.

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Role of Axie Infinity

Axie Infinity is a Pokémon-based digital pet universe developed on the Ethereum blockchain technology that enables users to earn token rewards through gameplay and ecosystem contributions. The platform can be used to breed Axies up to 7 times and an increasing amount of SLPs are needed each time an Axie is bred. The user can gain SLPs by playing the game in PvE Adventure mode and PvP Arena.

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Why is SLP booming?

During the first week of July 2021, Axie Infinity’s AXS token hit a record high of $19.60. Price of SLP grew by 102% from $0.127 on July 1 to a weekly record high at $0.257, due to huge influx of new users rushing to catch up on the play-to-earn digital pet game trend, thus bolstering high levels of revenue growth for Axie Infinity.

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Axie breeding on an all-time high

To a large extent, the success of the SLP crypto has been dependent on the overall growth and robust adoption of Axie Infinity gaming ecosystem. Axie Infinity registered a huge growth in the number of new users post its migration to the Ronin sidechain of the Ethereum network during the start of May 2021. An interesting observation would be that the highest growth in the Axie ecosystem emanated from Cuba, Qatar, the United Arab Emirates and the Philippines around end of April 2021.

Steady rise in the number of new users over the past few months was indicated by the spike in daily active user base, and number of Discord members and exclusive Axie holders. With new users entering the Axie Infinity ecosystem, high number of Axies would be required in order to engage in gameplay, thus driving demand for SLP that is primarily the currency required to breed Axies.

Dedicated gamers rewarded with regular income

A key factor for the high usage of the platform in certain geographies is associated with the economic struggles of the population. Consequently, SLP farming is emerging as a more lucrative means of earning as compared to fresh college graduates.

Breeding Axies can also serve as a lucrative option for users who may be able to earn a rare Mystic Axie with a price floor of 30 Ether (ETH) while genesis land plots in the Axie ecosystem can fetch users around 270 ETH. As a consequence of the growth of the Axie ecosystem since early May, the daily sales volume on Axie reached $25 million, with over 50,000 non-fungible tokens (NFTs) being sold each day. The income generated from the Axie Infinity ecosystem over the past week surpassed fees generated via all other cryptos combined. Although the current growth rate of the Axie Infinity’s SLP has skyrocketed, the long-term success of the platform is largely dependent on the future expansion of the Axie platform.

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