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AXS Rises 40% Amid a $64 M Worth Token Unlock

GameFi

Denis Goncharenko
cryptonews.net 24 January 2023 06:50, UTC
  
Reading time: ~2 m

The AXS crypto from play-to-earn juggernaut Axie Infinity is surging despite the upcoming release of tokens with a value of millions of dollars. According to Coinalyze, the dollar value locked in the quantity of open contracts in perpetual futures linked to AXS has increased by 156% to $104 million during the last day. A price rebound and an increase in open interest point to fresh investment on the positive side.

Players may acquire, breed, grow, battle, and trade non-fungible token-based creatures known as "axies" in the blockchain-based trading and combat game Axie Infinity (NFT). The Axie Infinity game's governance token is called Axie Infinity Shards, or AXS.

According to data provider TokenUnlocks, 4.8 million AXS tokens, or 1.8% of the cryptocurrency's 270 million total supply, became available later on Monday. This may make the most recent bullish market movement look puzzling.Unlocks are seen as negative triggers that provide liquidity and allow investors to secure gains. Tokens are locked up to stop major bag holders from selling their coins all at once and triggering price drops. These big bag holders are typically early investors or even project team members.

AXS on a bullrun

The confusing surge, according to Felix Hartmann, managing partner at the cryptocurrency investing firm Hartmann Capital, is the consequence of investors hoping the Axie team will provide a positive stimulus to offset the unfavorable effects of the token unlock.

One of the many cryptocurrencies making progress before the token unlock is AXS. Despite an impending unlock on February 2, the cryptocurrency of decentralized perpetuals-focused exchange dYdX has increased by 64% this month, exceeding market leaders bitcoin and ether. The week before its token release on January 12th, APT, the native cryptocurrency of layer 1 blockchain Aptos, also increased 40%. Since then, the cost of the cryptocurrency has doubled to $13.

AXS has increased by more than 100% this month, outpacing the 200-day SMA for the first time since 2020. The bull rebirth hasn't yet reignited curiosity for the gaming platform. Axie has the fewest live players (432,001) in the previous 30 days, according to data from the gaming statistics website ActivePlayer, since October 2020. Between September 2021 and May 2022, the gaming platform continuously had more than 2 million gamers.


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