AXS shoots to new all-time high amid Axie Infinity’s staking rewards launch

AXS shoots to new all-time high amid Axie Infinity's staking rewards launch
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  • Axie Infinity’s native governance token AXS secured a new all-time high of $137 on Sunday.
  • The blockchain game’s AXS staking and staking rewards feature launch fuelled the vertical rally.
  • Axie Infinity surpassed the $2 billion mark in all-time NFT trading volume in September.
  • The Pokemon-inspired blockchain game is now worth $30 billion.

JAIPUR (CoinChapter.com) – AXS, the top trending blockchain game Axie Infinity’s governance token, had a rendezvous with the moon when bullish buyers propelled it vertically upwards to $137 on Sunday. The surge led to a 25% gain from the weekend low at $103.32. As a result, the AXS/USDT pair has logged 44% gains (starting from $73.64) since the beginning of October.

AXS’s rallying momentum took a break after a parabolic liftoff to the last all-time high of $120.81 on Saturday. However, prices resumed the uptrend after a massive upsurge in AXS buying demand followed an upsurge in the token’s staking activity. Also, Axie Infinity joining the most valuable gaming companies in the world club led long-term investors to double down on their bullish AXS bets.

Related: Axie Infinity’s server issues are a thing of the past, as AXS charts new all-time highs

AXS Staking And Airdrop

Axie Infinity’s “battle, collect, earn” gameplay feature is one of the first available instances of the play-to-earn (P2E) model. The AXS (Axie Infinity Shard) token is a reward awarded to players. It can serve governance purposes as well. Recently AXS experienced record-buying volumes by players looking to generate income from breeding, battling, and trading digitized pets.

But now, there are more ways than one to make money than playing the game – through staking AXS. Picking cues from the DeFi space’s uber-popular passive income method, the Axie Infinity team recently announced the launch of AXS staking for token holders. Token lockups from frantic stakers in anticipation of gains led by stratospheric annual percentage rates (APRs) sparked an explosive buying spree.

Related: Axie Infinity (AXS) jumps 42% in crypto rebound rally; new all-time high incoming?

More than $12 million AXS tokens worth $1.54 billion have found their way to the staking vault. And with rewards of almost 200% on investment, the figures look to climb higher shortly. In addition, staking AXS will let investors earn voting rights over the application of a key fund. 

“In the future, staking AXS will give you voting rights and a say over the use of the Community Treasury which now holds over a billion dollars in tokens.”

read an excerpt from the offcial AXS Staking Guide
AXS staking participants will have a say in the usage of the billion-dollar worth Community Treasury
AXS staking participants will have a say in the usage of the billion-dollar worth Community Treasury, Source: AXS Staking Guide

Combined with AXS’s community airdrop, staking contributed to the spike in price and activity for the Axie Infinity token. A total of 10,000 wallets received a share of the 800,000 AXS airdrop, depending on the wallet’s activity level before October 26, 2020.

Billion Dollar NFT Sales And Billion Dollar Valuation

In September, Axie surpassed $2 billion in all-time NFT trading volume. As per, DappRadar’s Q3 Industry Report, Axie Infinity’s historical trading volume topped $2.18 billion, $800 million ahead of the trending NFT collection – CryptoPunks. The game’s towering NFT business came from more than a million users.

“According to Sky Mavis, Axie Infinity has surpassed 1.5 million active users during Q3. In addition, during this quarter, the game generated over $776 million in revenues. Easily surpassing entire blockchains like BSC and Bitcoin.”

DappRadar’s Q3 Industry Report

Related: AXS explodes to record highs following Axie Infinity’s record NFT sales

Over and above the billion-dollar NFT sales volume, Axie Infinity secured a critical milestone by finding a place amongst the top 5 most valuable gaming companies in the world.

Daytraders bought bullish updates on Axie Infinity, including the fundamental developments this week. But due to an exponential run, AXS/USDT now risks dropping due to overbought trading conditions.

Axie Infinity Token Technical Setup

During the noon trading session on Wednesday, a golden cross occurrence explains the token’s meteoric rise throughout the weekend. But the rally got overstretched and risked a correction amid an unsustainable rise from a sideways trading trend.

AXS/USDT risks dropping on overbought concerns
AXS/USDT risks dropping on overbought concerns. Source: AXSUSDT on TradingView.com

The relative strength index (RSI) for the AXS/USDT pair clocked 81.21, indicating that profit-takers might initiate a sell-off soon. In a bearish scenario, the Axie Infinity token risks dropping to $86. However, the chances of losses extending beyond $72 are minimal as the said price provides strong support.

Nonetheless, bullish pressure still remains dominant and the token could still chart new highs.

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