Ronin Network (RON) Price

Ronin Network Saves Axie Infinity

In 2023, Axie Infinity experienced an economic collapse due to the unsustainable Play 2 Earn concept. Many investors believed that Axie Infinity would go to zero, leading to a massive sell-off of Axie Infinity's token AXS. This caused AXS to plummet from its peak of 14 USD to 4 USD.

The unsustainability of Play 2 Earn also raised doubts among investors about blockchain games, leading to the term "Gamefi" being replaced by "Web3 games." This wasn't an issue with AXS itself but rather the immaturity of blockchain games, which had poor playability and couldn't attract Web 2 gamers. Gamefi relied solely on "play 2 earn" to attract players, resulting in attracting speculators from the cryptocurrency industry. Every player who entered played the game through "trading," removing the fun from the game. As the costs for later players increased and the income earned decreased, the blockchain game collapsed.

Traditional games, due to their high playability, still attract players who are willing to spend money for entertainment even if they don't earn a dime. Therefore, AXS created a game Layer 1 blockchain instead of creating a new game or doing a Rug Pull.

This game blockchain is the Ronin Network, essentially an Ethereum sidechain. Compared to using Ethereum, Ronin Network has lower fees and faster speeds. Ronin Network brought a lifeline to AXS, benefiting AXS players and opening the door for more Web 3 game development teams to join. These teams can develop their games on the Ronin Network and utilize AXS users for rapid growth.

As a result, users who originally held AXS and investors who purchased Ronin Network tokens can receive airdrops because of their holdings in AXS or RON (Ronin Network tokens).

The risk of a blockchain is smaller than that of a protocol, and the risk of a protocol is smaller than that of a project (XAI price analysis ). RON, with the help of AXS users, quickly became the leader in L1 gaming blockchains. AXS also transformed into a game issuance network because of RON. Any Web 3 game developed on RON can bring in Gas Fee income for AXS, thus completely saving this nearly closing project and the development company behind it, Sky Mavis.

At the same time, there is intense competition among blockchains, and developing a blockchain without any users would incur high costs in market promotion. The number of AXS users perfectly compensates for the lack of market promotion of RON. This is why many investors are bullish on RON.

Examples of transformation through blockchain development include Blast. Blur developed the Ethereum L2 NFT blockchain Blast, which has fast speed and low Gas Fees. NFTs originally intended to be released on ETH can now be developed using Blast. This allows Blur to not only list NFTs in a timely manner but also collect Blast as Gas Fees through NFT transactions. With the support of Blur's users, there is no need for extensive marketing like other Layer 2 blockchains to acquire customers.

So Crypto is decentralized, but the entire business model is still centralized. The number of effective customers determines the project's risk and success.

Ronin Network, with the massive user base of AXS, quickly became the leader in Layer 1 gaming blockchains. It is estimated that as Web 3 games become more popular, the price of the Ron token will rise.