B57

Pure Crypto. Nothing Else.

News

The Rise and (Spectacular) Fall of Axie Infinity: Can AXS Stage a Comeback?

In the rollercoaster ride of cryptocurrency, few narratives are more compelling than that of Axie Infinity (AXS). Once a shining star that reached an unbelievable peak of $172 in November 2021, AXS has taken a nosedive, plummeting by roughly 90%. So, what happened? Let’s dive into the details!

Player Count Predicament

Let’s talk numbers—because nothing says ‘trouble’ quite like a shrinking player base. AXS thrives on engagement from its gaming community. Previously, the game was bustling with players, but that has dramatically changed. In fact, player count dropped from a whopping 63,240 in January 2022 to just 8,950 by June 2022. Ouch!

  • New Users Needed: Fresh players are essential for maintaining demand for Axies, the cute critters at the heart of the game. Without new players coming in, the existing ones may start selling off their rewards, creating a cascading effect of losses.
  • SLP and AXS: The Catch-22: The rewards from battles, namely the Smooth Love Potion (SLP) and AXS, are dwindling in value. The lower the value, the less incentive there is for new players to join. If the game isn’t looking appealing, it becomes a downward spiral.

From Play-to-Earn to Play-and-Earn

Talk about a shift in perspective! Axie Infinity has quietly made the transition from a “play-to-earn” model to a “play-and-earn” model, which has raised eyebrows across the gaming and crypto communities. While some hold onto hope that the nostalgic charm of Axies will return, the brain trust at Axie Infinity is coming to terms with the fact that simply being fun may not be enough.

“The developers want it to go back to being just a game, when most players never saw it as a game in the first place.” – Joshua Brustein

The Inflation Factor

Meanwhile, inflation is proving to be the ultimate party pooper in the cryptocurrency realm. With the consumer price index (CPI) soaring to an annual pace of 8.6%, the U.S. Federal Reserve is pondering aggressive interest rate hikes. This current environment makes even the sturdiest of cryptocurrencies shiver in their boots—and AXS is no exception.

  • Downward Spiral: Following disappointing inflation news, AXS suffered a 7.5% drop. With liquidity drying up and investor fears escalating, AXS’s trajectory may remain precarious.

Technical Analysis: What’s In Store for AXS?

As if the fundamentals weren’t challenging enough, AXS has dropped below critical support levels. The moment its price slipped under the $18-$19 range, it opened the doors for further declines. For enthusiasts peeking into the chart patterns, there’s a glimmer of hope…

  • Descending Broadening Wedge: This pattern could signal a potential bullish reversal, sparking dreams of AXS making a comeback to previous heights—perhaps even up to $465 at some magical, unspecified point in the future.

Conclusion: Will AXS Rise Again?

In the realm of cryptocurrencies, the only guarantee is uncertainty. AXS is currently sitting in a precarious position, but the gaming industry has seen comebacks before. With shifts in player sentiment, inflationary pressures, and new strategies from developers, anything is possible. One thing is for sure, though: Axie Infinity has certainly provided a wild ride!

LEAVE A RESPONSE

Your email address will not be published. Required fields are marked *