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Axie Infinity's SLP Token surges by 58% overnight following 'Season 20' Update

Updated: Jul 25, 2024
Published: Feb 10, 2022
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The Ethereum-based play-to-earn crypto game Axie Infinity's reward token Smooth Love Potion (SLP) has surged its value by 58% overnight and more than 300% gains in the last seven days.

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SLP and AXS skyrocketing

SLP's overnight surge coincides with a 36% increase in the price of the game's governance token, AXS, over the last week. Following the official announcement of Axie's 'Season 20' update, which includes significant changes to the play-to-earn title's in-game economy, both tokens have surged in value.

Axie Infinity is a Pokémon/Tamagotchi-style game in which players acquire, breed, and fight monster NFTs to earn rewards. Battles can be used to earn SLP tokens once players have assembled a team of Axies. SLP tokens can be used to unlock advanced features in the game, such as the ability to breed new Axies.

The Season 20 update that drives the surge

The new Axie Season 20 updade focuses on lowering the daily supply of SLP tokens by 45 million, or 56%. They can no longer be earned by completing daily quests or playing in adventure mode.

The reward will now contain a significantly lower amount of SLP tokens and will place a greater emphasis on rewarding online arena battles. According to Sky Mavis' report, "inflation has been very high, with around 4x more SLP being created (supplied) per day than burned (demanded) through breeding."

The new SLP cap restrictions are designed to increase token scarcity, which the team believes is vital to avoid "total and permanent economic collapse."

Sky Mavis expects that the Season 20 update would stabilize the game's economy, which has been in decline in recent months, with the floor price for Axie NFTs plummeting from several hundred dollars to under $50. Despite the recent surge, the AXS token is still down by 61% from it's all-time high at $165.27.

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