Axie Infinity Breaks New All-Time Highs – AXS Rallies 131% In Three Days
Axie Infinity’s native token (AXS) price went up 131% in just three days of trading amid speculation that it is going to revolutionalize the blockchain-enabled gaming industry.
The AXS with its dollar pair AXS/USD reached a record value of $32.69 on Friday, up 31.28% intraday, and about 131% from its Tuesday low of $14.09. The spike put the pair in the list of best-performing digital assets on a year-to-date timeframe; its 2021 gains are now above 5,000%.
Axie Infinity’s soar is due to its rising popularity as a play-to-earn gaming service. The Ethereum-based blockchain project is a Pokemon-like game, wherein players adopt, breed and trade digital pets, called Axies, in the form of nonfungible tokens (NFTs).
Sky Mavis, Axie developer, called the game “a nation with a real economy,” allowing people to shape economic policies and practice local governance in a metaverse. The virtual environment has gained massive adoption among netizens. Its total revenue closed toward $120 million in the month of July, while the revenues were $1.92 million at the beginning of this year.
Axie Infinity revenue is close to hitting $120M. Source: Axie World
Delphi Digital analysts have forecasted that Axie’s revenue could reach approximately $153 million by the end of July and $1.1 billion by the 2021’s close.
What is AXS?
Axie Infinity was built as a play-to-earn model. In doing so, the project rewards players for the effort and time they put in both playing and growing the ecosystem. Every functional ecosystem needs tokens to transfer value. Axie Infinity has two assets to fill that role: Axie Infinity Shards (AXS) and Small Love Potion (SLP).
Players earn SLP through Axie’s gameplay. They can later exchange the token for fiat, enabling a system where playing time turns into a person-hour wage. Axie reported that many of its players were making $5 a day by playing Axie, but the income surged to $20 as of late.
AXS operates as a settlement currency inside the Axie Infinity ecosystem, using trading fees, governance, and Axies’ buying and selling. As a result, its holders receive 95% of Axie Infinity’s total revenue, just like a government that receives tax revenues from its citizens.
Sky Mavis holds about 20% of the total AXS token supply.
The proposition has helped to push AXS demand higher even amid an ongoing sector-wide downtrend. Since its launch, the Axie Infinity token has raked in more than 18,000% profits for its investors.
AXS Price
The latest AXS rally sparked after Elon Musk’s revealed that his space technology firm, SpaceX, holds Bitcoin (BTC), which gave the whole crypto market a push. He also committed that Tesla would resume the Bitcoin payment option for its electric vehicles once the flagship cryptocurrency switches to green energy solutions for mining.
Bitcoin’s rebound from below $30,000 has sent altcoins in a similar path, AXS included. However, the Axie Infinity token posted better short-term profits than its crypto rivals, given the euphoria surrounding its gaming project.
AXS has been in a steady uptrend since launch. Source: TradingView
Technically, AXS’s latest move uphill had it break above its parabolic resistance. The cryptocurrency now holds $24.07 as its interim support while eyeing a run-up toward its next potential upside targets at $36.48, $56.57, $76.65, and so on.
On the other hand, slipping below $24.07 would expose AXS to deeper downside levels at $19.78, $16.40 and $14.03.
