“The Axie Infinity resurgence seems less like riding Bitcoin ETF coattails and more like a fundamental comeback, underpinned by actual network activity and user engagement.”
Axie Infinity’s (AXS) valuation took a nosedive, hitting a two-year low at $4.20 in early September. Yet, recent data signals a potential resurgence for both the game and its native token.
Consider this: In the last 10 days of October, the price of AXS escalated by 43%. This isn’t merely a ripple effect of the broader crypto rally, mind you.
Let’s delve into “active addresses” for a moment. Think of them as bustling train stations where all the transactions happen. This metric has shown a steady uptick, indicating more users are hopping aboard the Axie Infinity train.
Image: The Gamer
From October 15 to October 29, the number of active addresses surged, reaching a 100-day high.
This metric essentially serves as the pulse of a blockchain network, telling us how many unique wallets are participating daily.
Axie Infinity (AXS) Active User Addresses vs. Price | Source: CryptoQuant
A sustained uptick in Active User Addresses usually indicates optimism in a blockchain network.
Over the past fortnight, this has manifested as a consistent increase in users executing transactions and making use of the various offerings on the Axie Infinity platform.
And what’s the result of this user uptick? A 43% recovery in AXS’s price. To give you an idea, the last time Axie Infinity saw this many active addresses, its token was valued above $6.
Image: Asia Crypto Today
There’s another token in play here—Smooth Love Potion (SLP). Used for trading in-game items, it’s like the extra lives or power-ups you’d buy in a video game.
Profits from holding SLP have surged, outperforming AXS’s recent gains. This suggests that gamers are not in a rush to cash out but are perhaps finding more value in in-game transactions.
It’s not just about price; it’s about utility. Gamers appear to be holding onto their assets, perhaps for more valuable in-game exchanges, hinting at a bullish trend for Axie Infinity.
Axie Infinity (AXS) Price Prediction, GIOM data | Source: IntoTheBlock
On the downside, if AXS’s price falls below $4, it might find a safety net around $4.65. This is where current holders have largely bought in.
So, could AXS hit the $10 mark? Well, on-chain data seems optimistic. But remember, investing in cryptocurrencies carries inherent risks. Always proceed with caution.