Journalist
Posted:
- Assessing Axie Infinity’s performance as a measure of future success.
- AXS was heavily discounted, but will growing competition undermine its prospects?
Axie Infinity’s native token AXS was one of the best performing top cryptocurrencies by market capitalization near the bull market peak in 2021. Fast forward to the present and it seems to have lost its former glory and excitement.
Is your wallet green? Check out the Axie Infinity Profit Calculator
But how bad is AXS’ fall from grace? The token is down 99.54% from its historic ATH it reached at the peak of the 2021 bull market. That same figure represents the amount of AXS that is currently losing.
#AxieInfinity holders in desperation!
Dates from @intotheblock shows that 99.54% of all addresses bought/acquired $AXS are currently without money. pic.twitter.com/tzQks7z2zJ
— Ali (@ali_charts) September 1, 2023
This performance indicates a lack of confidence in the token. This left AXS in a bit of trouble about its fate. Consider this. The crypto market moves quite fast and the rise and fall of the AXS token is an ideal example of this.
Will AXS be one of the cryptocurrencies and tokens that will survive the next bull cycle?
Past crypto market cycles have shown that not all past successes survive future cycles. The classic one hit wonders. A look at what is happening within the Axie Infinity ecosystem can provide insight into the future prospects of Axie Infinity.
Axie Infinity owed its initial success to being the first to successfully run a working game tokenomics within a blockchain-based ecosystem. This first mover advantage was a key component in its success, but the blockchain gaming segment has since evolved and competition has become more fierce.
AXS seems to have lost its lead in the market despite its early start advantage. It ranked 12the on DappRadar’s blockchain games ranking. The latter evaluates multiple metrics, including the total value of assets in dApps contracts, unique active wallets, and volume.
Source: DappRadar
Despite dropping ranks, the Axie Infinity has the second highest total value captured in smart contracts. Despite the market slowdown, the sector has also managed to maintain a healthy level of activity.
The number of players of Axie Infinity registered 348,117 active users in August. In contrast, at its peak in January 2022, it had over 2.7 million active users.
Source: Activeplayer.io
The chart above confirms that the network has indeed taken a hit in terms of user activity. However, this could also reflect low profitability as AXS lost value during the bear market. This meant that a bullish AXS could affect the network’s profitability and therefore Axie Infinity’s performance.
Read more about Axie Infinity’s price prediction for 2024
A recovery remains a tall order for AXS bulls given the price action. The token switched hands at $4.49 at the time of writing. The last time AXS traded at this level was in June 2021.
However, the issue has now been resolved and a bullish result could provide some hope for a discounted purchase.