Parsing The AXS Token (Axie Infinity)
The AXS token from one of the most popular NFT games, Axie Infinity, has dropped over 90% since the beginning of 2022 and continues to fall. How did it happen? What is the reason for this, and is AXS a good investment?
In today’s article, we will answer all these questions and make a forecast for the future of the AXS token.
Table of Contents
Cryptocurrency AXS – what is it?
To begin with, AXS is not a standalone coin; it was issued for the NFT game Axie Infinity as its main governance token and provided P2E utility to players.
Axie Infinity is a turn-based card game built on the Ethereum network that allows players to breed, grow, fight and trade Axie creatures.
Axie Infinity is a Pokémon and Tamagotchi-inspired game that uses NFTs to represent unique creatures of varying rarity, abilities, land plots, and other game assets.
You can earn AXS by playing Axie Infinity in Adventure or Arena modes. AXS serves as a governance token, allowing token holders to vote on the future development of the gameplay.
The game caused a real “boom” in the Philippines; almost everyone knew about it. And over time, Axie Infinity began to win the hearts of players worldwide, which favorably influenced its AXS token.
It gained its most incredible popularity at the end of 2021, around the same time that STEPN appeared, and the whole world learned that there are games you can earn money on. At that time, its price peaked at $160.
Why has AXS fallen and continues to fall?
AXS ended 2021 on a positive note. But with the beginning of 2022, the coin began to fall along with the entire crypto market. Let’s single out 3 main reasons for the fall of AXS:
1. General fall of cryptocurrencies
While AXS is backed by a technical product in the form of Axie Infinity, it is just like any other game subject to course changes based on general market sentiment. The chart shows the movement of the AXS and Bitcoin (BTC) rates as the leading indicator of the crypto market.
It shows that AXS moves almost identically to the cue ball. Of course, deviations are present, but they are not critical.
2. Hack Ronin Network
On March 29, 2022, Axie Infinity reported a loss of over US$625 million caused by an attack on the Ronin network.
The attacker used compromised private keys to withdraw this mind-boggling amount in two transactions, one for 173,600 Ether (ETH) and another for $25.5 million (USDC), one of the largest hacks in the history of decentralized finance.
In just 2 months, the price of the token dropped from $66.41 to $23.46:
In September, the company returned $30 million worth of cryptocurrency. But still, this is a small part of the total loss of 625 million.
3. News about unlocking investor tokens
The recent drops in the token are because the holders of the coin began to panic due to the imminent distribution of investors’ coins.
According to COO Alexander Larsen, the unlock period has been the subject of much misinformation. Larsen was trying to make that unlocked tokens do not necessarily equate to circulating tokens for many reasons.
But still, the currency was gradually declining in price by the time it was unlocked.
About 22 million AXS tokens were unlocked on Monday, October 24th. But as you can see from the chart, the coin dropped sharply and immediately bounced back. Larsen was right, and the fears of the token holders were not confirmed. The AXS rate is slowly starting to rise.
AXS cryptocurrency forecast and how to earn?
Now AXS is at $9.75:
In general, this is a reasonable price, considering that the token has grown by 5% in the last few days. And the volume in the last 24 hours has grown by 62%:
This is excellent news for the token; in the future, we can expect positive growth and a return to the $13.25 level; so far, there is no bad news for Axie Infinity, it will not fall below $9, and they are constantly buying back.
AXS staking earnings
It’s no secret to anyone familiar with Axie Infinity that the game has the highest staking returns in NFT games. Previously, everyone was amazed at 125% APY, but even now, at 45%, you can also make good money:
Given the forecast for positive growth by the end of 2022, by staking AXS now, you can get a good profit.
Summarizing the above, we can conclude that AXS is a good coin in the long run. Thanks to the beautiful ecosystem of the Axie Infinity game, which is developing every day, the support for the token is substantial and stable.
Now AXS is on the tiers, an excellent time to buy and stake it for passive income. Due to the high percentages of staking, by the expected rise in AXS, you can save a lot of coins to sell profitably in the future.