AXS, the token powering play-to-earn crypto game Axie Infinity, has dropped nearly 30% over the past seven days.
On the day, it's down roughly 1.2%.
The Axie Infinity governance token is now trading at $30.39, according to CoinMarketCap. Just last month, AXS was worth just under $75 per token. Users who hold this token can participate in various proposals, such as how the platform’s treasury should be spent and in-game mechanics.
Last November, AXS hit an all-time high of $165.37. Today’s prices indicate a drop of more than 81% since then.
AXS is one of two in-game tokens for the Pokémon-esque crypto game Axie Infinity.
Alongside this token, users can also purchase NFTs representing Axies, creatures that you use to duel against opponents; the winners earn Smooth Love Potion (SLP) tokens which are either sold for another currency or destroyed to “mate” Axies and create more. The SLP token is currently trading at a little over a penny and is down around 2.6% over the past 24 hours.
Additionally, users can spend money on digital plots of land within the Axie universe represented as NFTs.
Though Axie Infinity was one of 2021’s breakout crypto projects, it has since fallen on hard times.
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The reasons are myriad but could be linked to a failing tokenomic design and the recent $622 million hack of Axie Infinity's Ronin sidechain.
What’s behind Axie Infinity’s drop?
Axie Infinity is hemorrhaging users at an alarming rate.
According to data pulled from DappRadar, the number of users on the platform had peaked at roughly 63,000. Today, that figure is as low as 12,200.
As the chart above shows, there was a particularly steep drop-off in February.
This trend is likely due to a new economic model the Sky Mavis team, the group building Axie Infinity, implemented at that time. It resulted in the game giving far fewer SLP tokens as rewards to tighten the token’s inflation.
19/ The Future
We believe that these economic changes will allow us to start righting the ship and getting the economy moving in the right direction. We know that it will be key to execute on delivering new burn mechanisms and issuance reductions along are not enough
Indeed, much of the game has been built around a highly-inflationary economy.
Axies themselves can be created without limit, and before the February update, there was far more SLP being created than being destroyed. Without sustained growth to match this arrangement, it’s hard to see how the game could sustain itself.
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Alongside the Rube-Goldbergian design, the game’s speedy sidechain Ronin was hacked for $622 million at the end of March. Though some of those funds have since been recovered, and there are plans to reimburse affected users, the exploit has left a serious mark on Axie Infinity.
It’s far from over for crypto’s play-to-earn darling, but this week’s price action shows that users are wary of jumping back into the Axie Infinity world.
Disclaimer
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.
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According to technical analysis, AXS tokens have been trading bearishly. After hitting the ATH, the token corrected massively and reached a single-digit value. However, the future price of Axie Infinity (AXS) is expected to recover slowly and steadily.
The catalyst for the drop was the US Securities and Exchange Commission (SEC)'s claim that AXS (and a number of other major cryptocurrencies) is a security, which was made in a double whammy of lawsuits against Coinbase and Binance.
Axie Infinity's price prediction 2024 varies widely, with some suggesting a recovery to $14.79 and others predicting a dip to $4.12. The Axie Infinity price prediction for 2030 ranges from $41.34 to $59.51.
By November, the research firm Naavik reported that average earnings for Axie scholars had dropped below the Philippines' minimum wage. By spring 2022, the bottom had fallen out of the crypto market, making playing the game nearly worthless.
AXS will be unlocked based on a pre-determined schedule which will last for 65 months since the public sale in November 2020. 29% of initial token distributions are allocated to staking rewards.
Axie Infinity would need to gain 13,695.99% to reach $1,000. According to our Axie Infinity prediction algorithm, the price of Axie Infinity will not reach $1,000. The highest expected price our algorithm estimates is $ 316.62 by Jan 1, 2049.
Axie Infinity continues its growth trajectory, and according to analysts, it will start the year with a price of €50.46 and is projected to finish 2030 with a value of €56.08.
Why buy Axie Infinity (AXS) One of the main reasons to buy AXS, the token of Axie Infinity, is that it's the cryptocurrency of one of the most famous play-to-earn games ever created. This crypto, built on the Ethereum blockchain following the ERC-20 standard, is unique among its peers.
Axie Infinity Airdrop is worth Free AXS tokens for users when they play various games within the Axie Infinity Universe and through user-generated content initiatives. AXS holders will be able to claim rewards if they stake their tokens, play the game, and participate in key governance votes.
Axie Infinity: Origins is free to download and play on Android, PC, and MacOS devices. You can download Axie Infinity: Origins here. **Axie Infinity: Origins is also available in the Google Play Store, as well as the iOS App Store in select regions.
Axie Infinity is on the decline this week. The price of Axie Infinity has increased by 0.30% in the last hour and decreased by 2.21% in the past 24 hours. Axie Infinity's price has also fallen by 20.88% in the past week. The current price is $6.64 per AXS with a 24-hour trading volume of $58.61M.
This could be due to the promoter requesting the show is unavailable for resale, the ticket is classed as VIP, or your ticket is priced as a special offer.
According to our Axie Infinity price prediction, AXS is forecasted to trade within a price range of $ 7.23 and $ 34.22 next year. Axie Infinity will increase by 372.06% and reach $ 34.22 if it reaches the higher value target for 2025.
Axie Infinity (AXS) has the potential to reach the $100 big psychological target if the current daily bullish flag target is met. There is a high probability that AXS's price is in the process to bottom as the current rally comes after a bullish divergence signal was spotted at the lows.
Axie Infinity price prediction, AXS's price has pumped by 5.83% in the last 24 hours. Axie Infinity's price prediction for the most bearish scenario will value AXS at $5.70 in 2024. Axie Infinity's previous All Time High was on 6 November 2021 where AXS was priced at $164.90.
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