- Sky Mavis, developer of NFT-based video game Axie Infinity secured $152 million in funding.
- The Series B funding round was led by Andreessen Horowitz.
- AXS, Axie Infinity’s native token, retreated after reaching new ATH on Oct 4.
NEW DELHI (CoinChapter.com) — Sky Mavis, developer of crypto-based online game Axie Infinity, raised $152 million in a Series B funding round. Private VC firm Andreessen Horowitz led the investment round, in which Accel, Paradigm, crypto derivatives exchange FTX, and Samsung Next also participated.
The latest funding round brings Sky Mavis’s total funds raised to $161 million, with a $7.5 million Series A investment in May 2021. In its announcement, the Vietnam-based video game developer announced its plans to expand its team, scale infrastructure, and build a distribution platform to support developers interested in creating NFT-enabled games.
Founded in 2017, Axie Infinity has established itself as the apex NFT project, as per data from DappRadar. Axie Infinity witnessed tremendous growth in 2021, going from 38,000 active players in April 2021 to over 2 million in October. Additionally, Sky Mavis’s Ethereum sidechain, Ronin, now has $4.5 billion in TVL with over 2 million wallets.
Sky Mavis highlighted its roadmap for the future, which includes the release of Ronin DEX for trading in-game tokens. The firm also promised continued development of Project K, a new land-based game. Axie Infinity would allow players to try it for free before buying their team.
The team is building a category-defining play-to-earn NFT gaming and infrastructure company and we’re thrilled to be partnering with them as they continue to break new, ambitious frontiers!Andrei Brasoveanu, Partner, Accel.
Axie Infinity Charts New ATH
Tuesday’s investment round follows Axie Infinity native token AXS charting a new ATH on the daily charts. However, AXS reached $161.5 before a sharp pullback caused AXS to close the day down 2.07%. Powerful fundamentals, such as airdrops and the launch of staking fuel AXS’s parabolic price rise.
Axie Infinity announced the launch of staking capabilities on Sept 30, and users responded enthusiastically. Since launch, holders have already staked around 13.2 million AXS (worth $1.71 billion). Moreover, Axie Infinity airdropped 800,000 AXS to early adopters of the game.
Out of the total 800,000 AXS, users received a share based on their wallet’s activity level. As a result, more active users receive larger shares worth thousands in dollar value, while less active users receive smaller allocations. However, even smaller AXS allocations have a significant dollar value.
AXS fell 21.1% between Monday’s high of $161.5 and the day’s low of $127. The downtrend continued on Tuesday, with a 16.03% drop between high ($148.4) and low ($124.8) levels. As such, the bulls would try to close the day above immediate support at $124.
However, if AXS breaches below, the Axie token would likely use support at $116 and $106.7 to arrest any further downfall. On the other hand, Axie bulls will target resistance at $141.4 to start a sustained uptrend.
If AXS breaks above, further resistance at $150.5, followed by resistance near the Axie token’s latest ATH at $157.4, would cap any further upside movement. Also, AXS is bullish across all time horizons, as the token trades above its 50-Day and 200-Day moving average trendlines.
Meanwhile, MACD for AXS is bullish, but the MACD histogram bars are declining after two days of the downtrend. In detail, it means the MACD line (12-day and 26-day EMA difference) is moving closer to its signal line (9-Day EMA of MACD). A bearish crossover would occur when the MACD line moves below its signal line.
At the time of writing, AXS was trading at $127.8, down 5.06% on the day.