Metaverse tokens gained quite a bit of fame after Facebook’s 2021 rebrand. This decision marked the start of a major bull run for tokens in the metaverse space. Some of these coins are Decentraland (MANA), Sandbox (SAND), Enjin (ENJ), Axie Infinity (AXS), and more.
Axie Infinity Coin And Its Bullish Future
The price of Axie Infinity rose 5.677% in less than five months, reaching an all-time high of $165.25. This exponential uptick has since declined about 72% to where it currently trades – $46.45. Despite this massive drop, AXS appears to be perfectly positioned for a bullish future based on three on-chain metrics.
The delivery of a particular token on an exchange can be used to gauge the potential pressure on the sell side. While not all tokens on exchanges are there to be sold, some are provided as collateral for traders.
Generally, a spike in this metric is used to speculate the pressure on the sell side and for AXS, this number has been on a nosedive. In the past eight months, the number of AXS tokens on centralized entities has decreased from 20 million to 2.8 million.
This 86% drop indicates that investors are extremely optimistic about Axie Infinity’s price performance.
Offer at trade fairs | Source: Santiment
Complementing the bullishness for AXS is the 365-day Market Value to Realized Value (MVRV) model. This indicator is used to assess the average profit/loss of investors who have purchased AXS tokens in the past year.
A negative value of less than -10% indicates that short-term holders are at a loss and this is generally where long-term holders tend to accumulate. That is why a value below -10% is often referred to as an “opportunity zone”. Currently, the 365-day MVRV for Axie Infinity hovers around -46% and has been negative since January 2022, suggesting that the short-term holders are selling at a loss, allowing stronger hands to buy AXS at a discount.
Market parties can therefore expect that Axie Infinity will see a significant boost in the near future due to the lack of sales pressure in combination with the increasing interest from whales.
MVRV ratio | Source: Santiment
Finally, the supply distribution chart shows that wallets with 1,000,000 and more coins have started accumulating AXS since Feb. 10. The number of such wallets has since increased from 9 to 100.
Supply distribution | Source: Santiment
As of May 2021, the hype surrounding Metaverse tokens seems to have died down, but the prospects of Axie Infinity seem to be improving quite a bit.
This post Axie Infinity and why you should consider collecting this token in the future
was published first on https://ambcrypto.com/axie-infinity-and-why-you-can-consider-accumulating-this-token-going-forward/
