Axie Infinity’s AXS Gains 40% After Game Restructuring• February 6, 2022 6:32 pm • Comments
Axie Infinity recently announced a list of comprehensive changes that the game was going to take in order to ensure the growth of its community and ecosystem.
The company currently is the leading NFT game that utilizes the AXS governance token for the Axie Infinity protocol and AXS is ranked 37th by total market cap according to CoinMarketCap.
As a result of the announcement, it was recorded that the AXS token had increased by almost 40% in just three days indicating investor are optimistic about the NFT based game.
Currently, the AXS has reached the $65 price point which is the highest the token has been in the past two weeks.
Baby steps, Axie.
After announcing a revamped reward structure, AXS rallied by nearly 40% in only three days. https://t.co/kbp4PGRRk8
— Prosongit Sorker (@prosongit) February 6, 2022
AXS rallied to over $65, its best level in more than two weeks, as Axie Infinity revealed a revamped reward structure for its player-vs-player (PVP) competition round.
In detail, the play-to-earn startup expanded its number of leaderboard slots to 300,000 and boosted the amount of AXS rewards to 117,676 from the earlier 3,000 for the next season.
“This will supercharge the competitive Axie scene and create more demand for quality Axie teams in the ecosystem,” Axie Infinity explained, adding that their move would create a $6 million worth of prize pool for Season 20.
AXS is more than just a governance token as it also has the important utility of being used as the currency to buy in-game NFTs from the Axie marketplace.
At the same time though, there are also other currencies that can be used within the game in order to purchase NFTs such as the token Smooth Love Potions (SLP) which means that the game supports a multi-token economy.
Players primarily earn the SLP potion by playing the game and earning it through rewards.
In an effort to increase the value of the SLP tokens, decisions were made within the game to reduce the number of ways a player could earn SLP which has been estimated to reduce the supply of the token by around 50%.
This would also affect the price of AXS as well since the increased scarcity of SLP would mean that players might turn to AXS instead to make purchases within the game.
This would most likely explain the recent explosive growth of AXS and shows that the company is starting to make drastic changes within the game in order to ensure the longevity of the in-game economy.
— Crypto Guy (@crypto_guy_btc) February 6, 2022
The latest period of buying in the AXS market has prompted its price to reclaim a critical short-term resistance level as support.
Notably, AXS price crossed above its 200-4H exponential moving average (200-4H EMA; the blue wave in the chart below) on Sunday.
The recent retests of the same level coincided with an increase in selling sentiment. Therefore, reclaiming it as support raised AXS’s potential to extend its rally.
The $68 level would be the next upside target, according to the Fibonacci retracement graph drawn from AXS’s swing high near $140 to its swing low around $45.
Meanwhile, a decisive move above the said level could have AXS aim for $80 next.
Many are wondering if there will continue to be additional changes in the game that could affect the price of AXS.
Axie Infinity is the largest NFT game so far and the continued growth of AXS shows that there may be future potential for NFT based gaming to be adopted by the mainstream.
Axie Infinity #AXS token is up 40% after taking action to prevent a “permanent economic collapse.”
03/02/2022 the price was $46.71
Today – 02.06.2022 – 65.05$
— Mr. 19 & Mrs. 12💎 (@Mr19_And_Mrs12) February 6, 2022
Join the conversation!
We have no tolerance for comments containing violence, racism, profanity, vulgarity, doxing, or discourteous behavior. If a comment is spam, instead of replying to it please click the icon below and to the right of that comment. Thank you for partnering with us to maintain fruitful conversation.