- AXS token rises as the Axie Infinity blockchain witnesses strong address activity ahead of the month.
- Retail investors should be careful as a total of 4.8 million AXS tokens could be released.
Blockchain-based Play-to-Earn giant Axie Infinity has made headlines with its native token, AXS, rising significantly in just a few days. On Sunday, January 22nd, the Axie Infinity (AXS) token surged 42% to near a four-month high of $14.
At the time of writing, AXS is trading at $12.19 and has a market cap of $1.2 billion. Axie Infinity is a blockchain-based trading and battle game partly owned by users on the platform. Axis Infinity is currently the most successful play-2-earn (P2E) game in the digital currency ecosystem.
Amidst the broader crypto market slowdown in 2022 last year, the play-to-earn gaming ecosystem was also hit hard, resulting in lower user engagement. However, since the beginning of 2023, address activity on the Axie Infinity blockchain has regained momentum. Data from DappRadar shows that his Axie Infinity, a leading P2E gaming platform, has seen user activity spike by 59% since the beginning of 2023.
Additionally, since January 1st, sales volume on the platform has surged by 214%, and the number of transactions per day has increased by more than 100%. AXS’s latest price increase is due to a significant surge in the number of daily active wallets trading this crypto. However, after peaking on January 14th, active addresses began to trend downward again.
Along with Axie Infinity, on-chain data provider Santiment reported that another cryptocurrency called SmoothLovePotion witnessed a similar surge in its address activity.
♾🧪 #AxieInfinity & #SmoothLovePotion It has returned to Earth after a slowdown in address activity last week. However, these he two could start another rally again once the network’s growth starts to gain momentum.Read community posts $AXS & $SLPhttps://t.co/4viV3Y52Kc pic.twitter.com/VsHJgfo5vG
— Santiment (@santimentfeed) January 23, 2023
Beware of AXS Token Rally
Axie Infinity’s native token AXS has risen considerably, but investors should keep an eye on upcoming events. A total of 4.8 million of his AXS tokens, representing 1.8% of his total AXS supply, will be released later on Monday, according to data source TokenUnlocks.
Token unlocking like this usually signals bearish activity as a large supply floods the market and investors secure profits. Felix Hartmann, managing partner of crypto investment firm Hartmann Capital, believes the community believes that the recent market rally will provide a positive catalyst for the Axie team to counter the bearish impact of unlocking the token. I believe this is due to the fact that
Hartmann told CoinDesk:
No spam, no lies. Insight only. You can withdraw at any time.
Over the past 12 months, the cryptocurrency team has started building a track record for saving the key unlock date announcements. It’s been happening so consistently that people are expecting a bullish catalyst around unlocking.
AXS is one of the tokens that unlocks beyond the expectations of a bullish catalyst going forward. Hartmann said this new trend of releasing good news along with unlocking tokens is unethical. “I think this new trend is pretty unethical as it’s buzzing around to help investors unload in retail. [investors]I haven’t noticed anything like unlocking,” he added.
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