Axie Infinity (AXS) has a prominent place among the Metaverse projects marked by their top returns for their early investors. Nonetheless, the Pokémon-inspired Metaverse game – that is based on a play-to-earn mechanism – has been making a great effort to regain its lost prestige for some of the recent weeks. In such a scenario, the game’s market capitalization has diminished below the figure of $1B since the 10th of this month.
Gradual Market Crash of Axie Infinity and the Potential Reasons Behind It
Simultaneously, a twenty percent drop has taken place in AXS’ price during the previous 7 days, as per the data revealed on 24th October by CoinMarketCap. Particularly, the market capitalization of AXS dropped from $1.04B (on the 10th of October) to nearly $833.35M, resulting in more than a twenty percent downfall during the former 14 days. The potential causes at the back of the recent decrease in the value of the well-known non-fungible token game might include the declaration by its developers.
They mentioned in their statement that additional Axie Infinity Shards would be unlocked by them according to the strategy. As per TokenUnlocks (a data aggregating venue), a figure of up to 21.5M AXS scheduled to be issued for the company’s staking, advisors, team, and so on, comprises almost eight percent of the cumulative supply of the asset. Keeping in view AXS’ price, which is placed at $8.61, it is indicated that AXS tokens’ approximately $185M worth will become a part of the market in line with a scheduled strategy.
This will likely push the asset below the support zone thereof as it develops a huge selling pressure. Nonetheless, as the game’s players are getting ready for the launch of the tokens in a great amount, Aleksander Leonard Larsen (the chief operating officer of both Sky Mavis and Axie Infinity) guaranteed them that there is a difference between the tokens being circulated and those which are unlocked.
According to him, the respective procedure is a routine business for Axie. In the meantime, the cumulative new addresses which hold AXS on the venue keep on expressing advancement, occupying a place at 60,710. This denotes an upsurge of nearly 7.48% in comparison with 56,170 (the figure witnessed on 28th July), even though a gradual decrease has taken place in the addresses. This points out that whales are in a position to dump their assets.
The Price Analysis of Axie Infinity’s Local Token AXS
In the present condition, the present place of AXS is $8.61 – experiencing a 2.85% decrease in a day, and a declining 22.03% in comparison with its position 7 days back. Simultaneous to this, the market capitalization of the decentralized finance (DeFi) asset of Axie Infinity is placed at $833.35M. In this way, the native token of the platform is slowly expressing a downward trend. Consequently, the place on which it is standing at the moment is fifty-eighth.
