Axie Infinity’s active portfolios resumed their activities, but sentiment towards AXS turned negative.
If AXS circulation is further increased, it could lead to short-term selling pressure.
The crypto gaming sector including Axie Infinity [AXS], seldom enjoyed a great performance during the 2022 market purge. But since the start of 2023, AXS seemed to have reversed the trend that showed for most of 2022.
Read Axie Infinitys [AXS] Price prediction 2023-2024
On January 20 Sentiment published a report detailing the performance of the Axie ecosystem over the past three weeks. According to the reveal, there were some lows, but mostly highlights, of the play-to-earn gaming ecosystem.
The switch should stay, but…
Notably, there was a 59% increase in Unique Active Wallets (UAW) used on the AXS network, according to Dapp radar. For context, the metric described how users interacted with decentralized applications on a smart contract platform.
While it didn’t translate to daily active users, it meant an increase in gaming activity and in-game AXS NFTs.
Source: DappRadar
This was the case until January 14. However, information from the global dApp tracker showed that interaction with active wallets has decreased. At the time of writing, the UAW was down 5.79% over the past 24 hours. This drop also saw trades fall as their volume shredded to $743,290.
The volume decline spread further to the distinction to AXS. According to Santiment, overall sentiment on Axie was -0.255. This one implied that the social volume may have been high, but the overall perception was most likely very low.
Despite the drop, on-chain data showed that AXS’s circulation had risen to 2.31 million in the past seven days. This increase led to an improvement in AXS exchange between portfolios within the above period. However, a further spike could increase short-term selling pressure for the token.
Source: Sentiment
Realistic or not, here it is The market cap of AXS in terms of BTC
The demand for tokens for Axie infinity is taking over
After the monumental achievement, the demand for native tokens under the Axie Infinity chain increased. Santiment’s data revealed that its sister token, Smooth Love Potion [SLP] also accompanied AXS with a UAW walk.
However, the last SLP rally peaked on January 14. From the time of peaking to the time of writing, AXS had lost 12% of its value, while SLP, on the other hand, shredded 11%. As a result, Axie Infinity’s network growth hit one of its lowest points in a long time.
Source: Sentiment
In conclusion, the state of AXS at the time of writing may not seem too good. But it was certainly an improvement from 2022. To build on the improvement, Axie’s on-chain status may need to be significantly restored in several areas.
This post Axie Infinity: decoding if a spike in interaction can change the trend of AXS
was published first on https://ambcrypto.com/axie-infinity-decoding-if-a-spike-in-interaction-can-shift-axss-trend/
