The past few months have not been that exhilarating for the crypto space. The scars of September are still quite evident and the current valuation of almost all the top coins support the aforementioned claim.
However, the performance of a particular alt has managed to stun almost everyone from the community.
This alt was valued around $14 in min-July, but has witnessed a 750% jump since then. Right now, Axie Infinity’s native token AXS has had a pretty phenomenal ride over the past few months. After witnessing a multi percentage growth of late, this token now occupies the 30th spot on CMC’s rankings. Its market cap has, in fact, crossed the $6.6 billion mark already.
The protocol’s revenue has also massively risen over the past few weeks. With a revenue of close to $787 million over the past 90-days, Axie is second only to Ethereum on this front.
What’s more, as per Messari’s data, Axie Infinity ranks among the top 5 video game organizations in the world on the basis of its diluted market capitalization.
Additionally, Axie’s buyer economy is larger than any other NFT project’s. In fact, Axie has more participants than the rest of the notable projects combined and that’s just another feather in its hat.
Where HODLers stand at the moment
At the time of writing, quite literally no address was in loss. 99.55% of all the addresses were in profit, while the remaining 0.45% were in a no-loss or no-profit state. Even though this is something to rejoice about, it should be borne in mind that market participants tend to cash out and relish their profits at such peaks.
Something similar was witnessed in Solana’s case too. As soon as its valuation crossed the $215 mark, the selling pressure set foot. In effect, the alt’s price dropped back to a level as low as $115 before re-commencing its rally. Ergo, something similar can be expected from Axie too in the coming days.
In fact, the state of quite a few metrics advocated that Axie was bound to undergo a correction over the next few trading sessions. The number of large transactions, for starters, had dropped from 28 to 17 in just a day’s time, indicating the fading interest of market participants.
Even the average balance had flattened from $2.03 million to $1.9 million over the past day. The same reasserts the fact that short term HODLers have started relishing their gains at this stage. In fact, as per data from ITB, approximately 320k additional Axie tokens have been bought than sold in the past 12 hours.
Light at the end of the tunnel
Axie’s turnover ratio has however been increasing of late. As such, this metric projects the ratio between the volume and the open interest. Thus, even if Axie undergoes corrections, the recovery would be quite quick because short-term hedging and speculative activity is well under control.
Further, Axie also intends to start its own decentralised exchange to attract additional liquidity for its in-game resources. The same might end up becoming its trump card in the near future. Thus, as far as long term prospects are concerned, this might be another added advantage for the gaming protocol.
Additionally, close to 41% of the venture and private investment funds allocated in last month went to NFTs and gaming projects. By and large, the capital flowing highlights the fact that people outside the crypto space too have faith in the future of the gaming and NFT spaces.
Axie has already managed to carve a niche for itself in the aforementioned spaces, and keeping in mind its recent performance, the protocol totally has the potential to become the gamut leader in the near future.
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