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Axie Infinity (AXS) price retraces nearly 50% from its all-time high

Axie Infinity, Axie Infinity (AXS) price retraces nearly 50% from its all-time high
Image by Carlos Lincoln from Pixabay
  • Axie Infinity is a blockchain game gaining momentum
  • Its pay-to-earn model lets users earn AXS for playing
  • The use cases for AXS remain very limited, indicating the recent ATH is a speculative bubble

The third quarter of 2021 has been a mixed bag for the majority of cryptocurrencies. A lack of clear market direction creates confusion regarding top assets. Axie Infinity (AXS) has had a good start to Q3, although its momentum is tapering off as well.

Also read: Axie Infinity’s AXS token defies gravity in a near 800% vertical liftoff, crash ahead?

Axie Infinity (AXS) Price Pops And Drops

The price of Axie Infinity’s AXS token has exploded in late June 2021.

That allows the token to note a strong early Q3 2021 performance. Its value rose from $3.51 to $28.93 in mere weeks. Although the momentum is now stalling and reversing course, the overall growth remains rather remarkable. It is often difficult for alternative crypto assets to remain on a high level for long. AXS is no exception in this regard, as its current value is nearly 50% lower than the recent all-time high.

AXS/USDT chart by TradingView.com
AXS/USDT chart by TradingView.com

The bigger question is whether interest in the blockchain game is tapering off.

It remains a popular project judging by its overall sales volume. Users must buy and train Axies to fight other players and progress through the campaign in the game. The sales volume of Axie Infinity remains rather high and has surpassed popular NFT projects like CryptoPunks. Some Axies go for as much as 200 ETH and more, indicating the competitive nature of this game.

Why Is Interest Surging?

Considering how Axie Infinity isn’t the first blockchain game, one must wonder what makes this one stand out.

It is one of the first games to embrace the play-to-earn model. While there is an upfront investment – unless one acquires a scholarship – there are ways to make money playing the game. Selling Axies is one option, but there is also the Small Love Potion. These potions are used to strengthen Axies and be sold across various exchanges and the built-in marketplace.

Per the project website, Axie Infinity currently has over 250,000 daily active players.

A significant amount, and one that offers more promise compared to earlier projects like CryptoKitties. The “battle” aspect of this game creates a competitive nature where players want to best compete in the arena. Doing so requires farming many SLP, leveling up Axies, or buying more creatures to build a stronger team. 

The native AXS token – or Axie Infinity Shard – is a reward issued to players of the game.

There was a public sale for these tokens, and its supply will keep growing until a total of 270 million is reached. AXS Also serves as the governance token for this ecosystem. The developers will implement token staking support to receive more rewards, but holders will need to play the game and engage in governance. 

For now, the use cases of AXS itself are limited.

More players mean more rewards being issued and more tokens entering circulation. Unless there is a reason for players to buy AXS, the current bearish trend may not come to an end anytime soon. SLP Appears to be the main currency of focus for those playing the Axie Infinity game, as it allows for breeding Axies. It is now up to the Axie Infinity developers to make AXS more appealing. 

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JP Buntinx_CoinChapter
Jean-Pierre Buntinx

JP Buntinx has been writing about cryptocurrency since 2012. His interest in crypto, blockchain, fintech, and finance allows him to cover a broad range of different topics.

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