The rise of blockchain gaming and the Metaverse have quietly pumped not simply Metaverse tokens, however the bigger narrative too. In truth, the identical was highlighted in a previous article as nicely. Whereas the rising recognition of blockchain gaming tokens is noteworthy, Axie Infinity’s positive aspects make different tokens’ rise look much less so.
Nevertheless, during the last week, Axie has roughly seen sideways motion after hitting an ATH $165.
Axie wave over or do extra positive aspects await?
AXS, after charting near 320% positive aspects during the last three months, was buying and selling at $156.73 on the time of writing. Whereas there isn’t a lot to fret about on the value entrance, the value motion appeared much less dramatic with Axie noting merely 3.83% day by day positive aspects.
The altcoin, after recording a excessive yearly ROI of near 110761%, has been transferring sideways since 29 October. In truth, Axie’s Relative Energy Index additionally appeared overheated, on the time of writing, as Axie’s value struggled forward of the $156-mark.
So, may the cooling down of the gaming and metaverse mania be behind AXS’s misplaced momentum?
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Whereas Axie could not have seen monumental positive aspects during the last week, Axie infused positive aspects in different tokens. For example, Axie Infinity lately introduced the launch of its decentralized trade, Katana. This triggered a rally in reward token Clean Love Potion (SLP). SLP charted over 100% positive aspects during the last two days because it lastly made a comeback after the drop in value in September 2021.
According to Colin Wu, quickly after the discharge, Katana DEX launched on Axie’s Ethereum sidechain Ronin and hit $163.23 million as its transaction quantity rose to $150 million on 5 November. So, aside from the Ethereum-based Ronin, what else has been in Axie’s favor?
Notably, Axie’s provide on exchanges (as % of whole provide) was at its lowest whereas trade outflows spiked during the last week. This conduct appeared to focus on AXS HODLers’ conviction to carry.
Additional, AXS may’ve additionally pumped due to its volatility i.e. the annualized normal deviation of day by day returns over a window of time that has been dropping.
Moreover, Axie’s Sharpe ratio has maintained an honest quantity, making Axie a relatively safer asset to carry. Nonetheless, with Axie’s MVRV 7-day and 30-day wanting heated, AXS might even see some short-term pullback. This may current a great shopping for alternative across the $130-140 degree.