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Metaverse Token Axie Infinity (AXS) Suddenly Pumps 25% – What’s Happening?

AXS, the native token of Axie Infinity, has seen its price jump in recent hours. The project is a blockchain-based game metaverse in which players collect and breed digital pets called Axies that they can be used in a turn-based card game.

At one point, AXS rose to $8.82 after trading as low as $6.41 yesterday and has seen a 28% rally in recent hours. At press time, AXS was at $8.14, still recording a price pump of about 20% over the last 24 hours.

Over the last seven days, it’s up 25%. Today’s gain is accompanied by a massive surge in trading volume, which has grown to $295 million over the past 24 hours, up 750% from the day before.

Currently, Axie Infinity (AXS) has risen to the 52nd largest cryptocurrency with a market cap of nearly $812 million.

However, despite the massive pump, AXS is still one of the biggest losers of the bear market. AXS’ all-time high stand at $164.90 and was reached in November 2021. This represents a whopping 95% loss in value.

A look at the 1-day chart reveals that Axie Infinity has still not been able to break out of its downtrend channel. For this, a break above $9.00 would be required. If it fails, AXS would continue to move in bearish territory despite the recent pump.

Axie Infinity AXS USD 2022-12-05

AXS price still caught in a downtrend channel, 1-day chart Source: TradingView

Fundamentals Of Axie Infinity Look Weak

Meanwhile, the fundamentals for Axie Infinity continue to look less than rosy. According to the data platform CryptoSlam, the sales volume of Axie Infinity has shrunk massively since the peak on November 3, 2021 at $40.8 million.

Since May, volume has been bobbing around below $500,000, though it was still close to $100,000 at the end of October. Yesterday, December 4, it was only $19,500.

Axie Infinity Cryptoslam

Axie Infinity sales volume data. Source: Cryptoslam

On Its Way To Decentralization

So what is driving the AXS pump? One reason could be the impending decentralization of the project.

The team published a blog post today. In it, they shared that a group of over 700 invested and influential community members have come together to shape the future of Axie Infinity.

The team said it wants to actively work toward an end state. In this state, “invested” community members are responsible for making decisions about resourcing the Axie Infinity ecosystem.

Currently, the project is still in the initial decentralization phase. However, important progress has been made recently as part of a step-by-step strategy, the blog post states.

As progress is made on the decentralization continuum, actions like council formation, resource allocation, on-chain voting, and treasury activation will be unlocked.

The ultimate goal is to give the collective the responsibility to advance self-organization. To this end, a collective of established community members of Axie Infinity, the “town builders,” was formed back in May.

In July, they decided to bring in a number of contributor electors to play a critical role in an initial pilot program for contributors.

In August, the town builders and contributor electors distributed applications for the contributors program. Each proposal submitted hundreds of applications.

After being elected town builders by the founding town builder team, the first 700 community members were selected today to participate in the first pilot “season” of Axie Contributors.

They will contribute to a newly created governance area on Axie Infinity’s Discord.

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Axie Infinity Can Recoup Its 6-Month Loss And Rise 25%, But It Must First Do This

Axie Infinity (AXS) finally managed to break away from its downward momentum that’s been going on for the last six months.

According to latest data from Coingecko, the crypto asset peaked at $11.29 today before entering a minor price correction that made it decline by more than 7% over a 24-hour period.

  • AXS is in recovery after tremendous selling pressure crippled it in late October
  • Axie Infinity is targeting a 23% jump to surpass the $13 marker
  • AXS needs to close today’s session staying above $10.3 for it remain bullish

At the time of this writing, AXS was trading at $10.47 and has gone up by 12.7% and 16.1% during the last seven and 14 days, respectively.

Although it is still down by almost 18% for the past month, the altcoin is showing signs of a bullish rally that could make it breach the $13 marker.

A Clear Path For Axie Infinity Recovery

During the last few days, the cryptocurrency’s price movement was caught in a double bottom pattern that established $8.5 zone as base support region.

Source: TradingView

Following the recent rally of the crypto market, Axie Infinity managed to bounce back from that crucial zone and surpassed the $10.3 marker with its 24.5% surge.

This kind of performance enabled AXS to turn the tides in its favor, getting out of its bearish cycle and is now looking to make a decisive push with the aim of increasing its spot trading price by more than 23%.

In order to do that, the digital currency needs to make sure that it will keep the $10.3 range as today’s sessions come to an end. If that happens, the virtual coin will push its changing hands value to $13.15.

Traders, however, must watch this condition like a hawk, as the bullish thesis will easily be invalidated if AXS fails to hold its current position right now.

Still Feeling The Pressure From AXS Vesting Period Expiration

Undeniably, AXS is still feeling the effects of the tremendous selling pressure that it experienced when vesting period for the asset ended on October 24.

In the crypto space, such event is usually followed by significant price dumps as sellers, after a considerably long wait, finally get the chance to sell their holdings.

Vesting period refers to a specific length of time when early investors for a project or a crypto token such as Axie Infinity are required to hold their investments, making them unable to cash out as new investors come in.

When the unlock schedule came on October 26, AXS struggled to reach the $10 marker even though the crypto market initiated a bullish rally in order to reclaim the $1 trillion market cap turf.

The cryptocurrency now has a chance to return to its bullish ways provided that it can sustain its current range and avoid further decline.

AXS market cap  at $1 billion on the weekly chart | Featured image from Bitcoin News, Chart: TradingView.com

Disclaimer: The analysis represents the author’s understanding of the crypto market and should not be construed as investment advice.

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$185 Million Worth Of AXS Tokens Set To Be Unlocked, Time To Get Out Of Axie Infinity?

Axie Infinity (AXS) is the leading play-to-earn ecosystem in the crypto space and has continued to maintain this title since its release. Its native cryptocurrency, AXS, has seen its price take a hit in the market since the bear market began alongside other digital assets in the space. However, it seems that the decline in the price of AXS is not at its end as more tokens are set to be released into circulation on Monday, 24 October.

21.5 Million Tokens Are Coming

Just like a lot of other projects in the crypto space, Axie Infinity (AXS) also uses a vesting schedule where tokens are unlocked at specific times. This is in part to control the amount of supply of tokens in the market and to ensure the digital asset remains valuable.

The most recent unlock event for Axie Infinity is actually happening on Monday which will see more than 21.5 million tokens being put into circulation. AXS’s current circulating supply is at 103 million and the token unlock will account for approximately 8% of the entire supply of AXS. The total value of the 21.5 million tokens being unlocked is $185.3 million given current prices. 

All of the tokens being unlocked on Monday will also follow the established allocation which ranges from team to staking rewards. Of the total 21.5 million, 26.6% (5.7 million) will be sent to the team. This comes out to around $57 million of the total value. Advisors and investors in the private sale round will see a combined $45 million go to them.

Axie Infinity (AXS) token unlock

8% of AXS supply set to be unlocked | Source: Token Unlocks

The remainder of the tokens, which is about half of the upcoming token unlock, will be going towards servicing the Axie Infinity ecosystem. This will be in the form of staking rewards, play to earn rewards, and other ecosystem funds.

Time To Get Out Of Axie Infinity?

Just like any asset, Axie Infinity also operates within the laws of supply and demand. The price of the digital asset is already on the decline due to the ongoing crypto market and more token supply in the market is not going to help its price. This has understandably led to concerns among investors in the token.

Axie Infinity (AXS) price chart from TradingView.com

AXS trending at $8.6 | Source: AXSUSD on TradingView.com

Given this, co-founder and COO of Axie Infinity Aleksander Leonard Larsen took to Twitter to explain that the unlock does not mean all of the tokens are going into circulation. Larsen explains that the unlocked tokens from staking, P2E, advisors, and the ecosystem fund will not be unlocked at once. But rather, “they follow a separate issuance schedule which is more flexible and can be tailored to user numbers.”

This does remove a considerable amount of supply that would otherwise flood the market. However, there are still tokens going out to private investors ($20 million), who can choose to dump their tokens on the market whenever they wish.

Selling pressure on AXS has been mounting due to this expected new supply. In the last seven days, the price of the cryptocurrency has declined more than 21% and is down 2.20% in the last 24 hours at the time of this writing to be trading at $8.65, according to data from Coinmarketcap.

Featured image from CoinGeek, chart from TradingView.com

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Axie Infinity Under Bearish Grip, But AXS Investors Still Optimistic

Axie Infinity (AXS) price has nosedived following a surprise entry by the bears as seen in the daily price chart. 

  • AXS hovering above both the 20- and 50-day EMA
  • Axie Infinity price dropped as the bears slammed investors shut after going all-in with the recent uptick.
  • The AXS/BTC pair has nosedived by 1.66% or at 0.0007748 BTC

If the bears can maintain this momentum, the bulls’ effort to recover will be put in vain. Now, to agitate and defeat the bears, the token will need to attract more buyers plus the bulls will need to get their heads together to boost AXS.

To date, the trading volume has dropped which is making the investors anxious and poses  a bit of concern, especially for the bulls.

Axie Bearish Stride Short-Lived

On the brighter side, crypto experts believe that this recent dip will be short-lived so investors should be ready to dive in once the green light is on.

Chart from TradingView.com

According to CoinMarketCap, AXS token trades at $18.06, or a dip of 4.29% as of this writing. AXS coin trading volume registered a drop of 0.4% or at 14 million. While the loss isn’t much, it still harbors the danger of eventually pulling the price further down. AXS’s market cap is at 0.09577.

The bearish perspective of AXS seems to be nearing its exit as the daily price chats showed multiple EMAs or a successful crossover. MACD on the daily chart also exhibited that the buyer’s line is hovering over the signal line of the seller with a very little gap. Now, if the bulls can successfully contradict the bearish movement then immense growth is anticipated. RSI value is currently almost 59.

AXS Profitability Surpasses 23% Loss

After going with the upward flow of AXS, the price has dangerously plunged as the bears crashed the party. However, GameFi projects like Axie Infinity thrive amid market crashes and volatility compared to other digital assets.

AXS is said to have dropped by as much as 90% after it has risen by 40% when it hit a low in June. Axie Infinity had its ATH in November at $160 but since then everything is just looking for the coin.

The altcoin marked its all-time high of $160 back in November 2021. However, it has consistently been on a downtrend. But, one good thing with AXS investors is that they can roll with the punches because they were already raking in profit for the longest time.

With this month’s 40% improvement on gains, AXS investors noted that only 22.29% have experienced losses which is very minimal compared to the profits which are said to spike way above its ATH.

 AXS total market cap at $1.6 billion on the daily chart | Source: TradingView.com

Featured image from BSC News, Chart from TradingView.com

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Axie Infinity Sales Record A Massive Slump, Losing Over $120 Million

Before now, Axie Infinity had maintained a solid foothold in the non-fungible token (NFT) space. Through massive sales, it stood as one of the leading and most successful NFT collectibles. The network had recorded almost $4.08 billion in sales volume. But June 2022 sales seem to be a mockery of its feats over the past year.

Sky Mavis, a Vietnamese studio, launched Axie Infinity in March 2018. It’s an online video game based on NFTs. The platform has gained popularity from using Ethereum-based tokens through its gaming economy. The gaming project runs on the Ronin blockchain.

Related Reading | Wall Street Investors Expect Bitcoin To Hit $10,000, Is This Possible?

The whole crypto industry keeps receiving blows, topped by discouraging news such as Coinbase selling users’ Geo data, making people even more suspicious about the market, and the NFT space looks no different.

The platform centers on using Axies, the Pokemon-Esque creators. In the game, players could receive Axies, the virtual pets, and subsequently breed and raise them for future use. They serve as formidable tools in gaming battles for players. Once the players advance in their skills and levels, they would possibly get rewards.

The NFT collectible then witnessed a drastic drop in its June sales volume. The main influencing factor is the prevailing crypto bear market that has crippled the majority of activities in the industry. Hence, there is an overall reduction in NFT investment choices from different angles.

June’s record from the recent Research for Axie Infinity placed the sales volume at about $3.18 million. The value is a considerable gap between its May volume of about $7.09 million. Comparing the two months indicates that June’s volume declined by 55% from May’s sales volume.

A general review of NFT monthly sales volume in 2022 shows June’s sales as the lowest. Its drop marks the first time since Feb 2021 for Axie Infinity to get a monthly book lower than $4 million. This is after the collectible recorded $1.67 million in Feb 2021.

Axie Infinity NFT Collectibles Record A Drop-In June Sales Volume

The negative trend is not just peculiar to Axie Infinity only. The NFT industry has June’s sales as the lowest for almost all collections. Some of them include Mutant Ape Yacht Club, CryptoPunks, Bored Ape Yacht Club, Moonbirds, NBA Top Shot, Meebits, and other collections that recorded low June sales volumes including Otherdeeds, Art Block, Azuki, etc.

Observing the reduced number of unique buyers for the Axie Infinity NFT in June 2022 shows more details about the drop. First, it explains the dip in transactions with the NFT collections. For June, its unique buyers were 52,507 with about 307,431 transactions.

However, the NFT collection had hit its monthly high in sales for 2022 in January. It recorded about 314,642 unique buyers with 1,296,870 transactions. Also, by the end of January, Axie Infinity had almost $126.49 million of sales volume. With its drop in June, the NFT collectible records a yearly low slump of $123.32 million from its January high.

Related Reading | Bitcoin Daily Exchange Net Flows Shows Sell-Offs Have Not Subsided

Also, Axie Infinity has an average sales value for both January and June to be $97.54 and $10.34, respectively. A comparison indicates a drop of about 89% between the months.

Daily chart shows 1% growth on the day chart | Source: AXSUSD on TradingView.com
Featured image from Pexels, charts from TradingView.com