The last few months have not been so exciting for the cryptographic space. The September scars are still quite evident and the current valuation of almost all major currencies supports the aforementioned claim.
However, the performance of one alt in particular managed to stun almost everyone in the community.
In this article, we will discuss:
amazing numbers
This alt was valued at around $14 for the month of July, but has witnessed a 750% jump since then. Currently, the native AXS token from Axie Infinity has had a phenomenal journey in recent months. After witnessing a growth of several percentages recently, this token now ranks 30th in the CMC ranking. Its market capitalization, in fact, has already passed the $6,6 billion mark.
Protocol revenue has also increased enormously in recent weeks. With revenue of around $787 million over the past 90 days, Axie is second only to Ethereum on that front.
What's more, according to Messari's data, Axie Infinity is among the top 5 video game organizations in the world based on its diluted market capitalization.
In addition, Axie's purchase savings are greater than that of any other NFT project. In fact, Axie has more participants than the rest of the notable projects combined and that's just another feather in her hat.
Where are the HODLers
As of this writing, literally no addresses were lost. 99,55% of all addresses were profitable, while the remaining 0,45% were in the no-loss or no-profit state. Even though this is something to be happy about, it should be borne in mind that market participants tend to profit and savor their profits at such peaks.
Something similar was also witnessed in Solana's case. Once its valuation crossed the $215 mark, selling pressure set in. In effect, the alt price dropped to as low as $115 before restarting its high. So something similar can be expected from Axie in the coming days as well.
In fact, the state of some metrics advocated that Axie would be subjected to a correction in upcoming trading sessions. The number of large transactions to begin with dropped from 28 to 17 in just one day, indicating a fading interest from market participants.
Even the average balance dropped from $2,03 million to $1,9 million the day before. It reaffirms the fact that short-term HODLers have started to savor their gains at this stage. In fact, according to ITB data, approximately 320 additional Axie tokens were bought than sold in the last 12 hours.
Light at the end of the tunnel
Axie’s turnover rate, however, has been increasing recently. As such, this metric projects the relationship between volume and open interest. Thus, even if Axie experiences corrections, the recovery would be quite quick because short-term hedging and speculative activity are well under control.
In addition, Axie also plans to start her own decentralized exchange to attract additional liquidity for her in-game resources. The same could end up becoming your asset in the near future. So, with regard to long-term perspectives, this can be another added advantage for the gaming protocol.
In addition, about 41% of private investment and venture funds allocated last month went to NFTs and gaming projects. In general, capital flow highlights the fact that people outside the cryptographic space also have faith in the future of gaming spaces and NFT.
Axie has already managed to carve a niche for itself in the aforementioned spaces and, given its recent performance, the protocol has all the potential to become the range leader in the near future.