- The number of active wallets and transactions has grown on Axie Infinity over the past month.
- However, a closer look revealed that this could be a passing fad.
Leading play-to-earn (P2E) blockchain game Axie Infinity [AXS] has according to data from DappRadar.
According to the on-chain data provider, the number of active wallets interacting with the decentralized application (dApp) has increased by 60% in the past month to 88,210. Similarly, the total number of completed transactions between these unique active wallets and the dApp’s smart contracts rose to 1.13 million, an increase of 72.39% over the same period.
Read Axie Infinity’s [AXS] Price Forecast 2023-24
The increase in activity on Axie Infinity over the past 30 days has been attributed to the series of ecosystem updates introduced over that period, most notably the reintroduction of its Streamer Rewards Program.
Axie Streamer Rewards are back! ✨
– 600 AXS prize pool
– Exclusive avatar of creator and border up for grabs
– All Axie Infinity game titles are eligible for rewards
Read the full details below and make sure to sign up on the form to join the program!
📜 | https://t.co/VTLV5PycUO pic.twitter.com/4IFLiYntNw
— Axie Infinity (@AxieInfinity) August 17, 2023
Axie Infinity relaunched this program after its first test pilot in February, when approximately 200 Axie creators logged more than 1,500 stream hours in total. To boost traction, Axie Infinity increased the total prize pool from 300 AXS to 600 AXS.
The signs of illness remain
Despite the increase in the number of active wallets and the number of transactions over the past month, a closer look at the protocol revealed that transaction volume declined over the same period. While the number of completed transactions on Axie Infinity increased by nearly 75%, the fiat value of these transactions fell by 8.05%, data from DappRadar showed.
As a result, the total fiat value of assets in the dApp’s smart contracts declined by 17.37% during the reporting period.
Source: DappRadar
The significant decline in interest in P2E games has resulted in a continued drop in monthly new accounts on Axie Infinity. According to Dune Analytics, the number of new accounts created monthly on Axie Infinity plummeted 9% between January and July.
Source: Dune analysis
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AXS needs help
Languishing under the control of the bears, the protocol’s governance token AXS also registered a 24% drop in value over the past month. At the time of writing, the altcoin was trading at $4.91, per data from CoinMarketCap.
Source: CoinMarketCap
An assessment of price movements on a daily chart revealed that AXS remained oversold among daily traders. At press time, the main momentum indicators rested below their respective centerlines.
The Relative Strength Index (RSI) was 25.83, while the Money Flow Index (MFI) was 20.34. At these values, sell-offs among AXS holders outpaced accumulation.
With the negative directional index (red) resting above the positive directional index (green), AXS bears controlled the market at the time of writing.
Source: AXS/USDT on TradingView