Axie Infinity faces significant external threats that could hinder its sustainability and growth in the competitive Web3 gaming space. Competition from other Web3 games, regulatory changes, and technological advancements pose significant challenges to its market position. This report will cover:

• The impact of competition on Axie Infinity's market share and player retention.
• The risks posed by regulatory changes to Axie Infinity's tokenomics and play-to-earn model.
• The challenges of technological advancements and security vulnerabilities in maintaining player trust.