Axie Infinity is an Ethereum-based collectible game that has been expanding since 2018. It is based on the concept pioneered by CryptoKitties. It was created by Sky Mavis, a Vietnam-based business that began as a passion project before evolving into a popular Ethereum game.
The Axie Infinity Shard (AXS) is the Axie Infinity ecosystem’s token. AXS is a governance token based on the ERC-20 standard that was released in November 2020. AXS tokens can be bought, sold, or earned by participating in the game. Other ERC-721 tokens linked with Axie Infinity include gaming assets (such as Axie characters) and Small Love Potion (SLP), an ERC-20 token.
What is Axie Infinity (AXS)?
Axies are referred to the gaming characters in the Axie Infinity environment. They’re non-fungible tokens (NFTs) that you own. You may keep them in your wallet, exchange them in a blockchain-based marketplace with other players or send them through other Ethereum addresses. Furthermore, Axies aren’t the only ERC-721 tokens in the game; there are also virtual Lands and Items.
Players can combat creatures in Lunacia — the Axie Infinity kingdom — using teams and formations in the Adventure mode (PvE — Player vs Environment). They may also play in Arena mode (PvP — Player vs Player) against other Axie trainers in real life. When you win, you receive a Small Love Potion (SLP) asset used to produce Axies. SLP is an ERC-20 token that can be traded on Binance and other exchanges.
With a high Axie price and hefty expenses on Ethereum, getting started is difficult for new players. Breeding necessitates the use of gas, which may quickly pile up to a significant amount of ether. The Ronin Ethereum sidechain, which was created mainly for Axie Infinity, will undoubtedly help solve this problem.
Axis Infinity Shard (AXS)
The AXS (Axie Infinity Shard) coin is a new addition to the Axie Infinity world, introduced in November 2020. AXS holders will be able to stake the token and earn AXS by voting and playing. The Community Treasury, which is replenished through in-game purchases, provides these benefits.
AXS will have a total supply of 270,000,000 units. Some tokens were set up for public sale, while others were reserved for Sky Mavis and the project’s advisers. At the first public sale, the original supply was a little under 60,000,000. The expected tokens which were released are forecasted to grow nearly every year until 2026.
How to Buy Axie?
An Axie may be obtained in two ways: through a platform-installed marketplace or the breeding of two Axies using a tiny quantity of ETH and special SLP (Small Love Potion) tokens. Small Love Potion is a platform token that can be earned through battles or purchased with ETH on Uniswap. The number of SLP tokens required for breeding is determined by how many times an Axie has been used for breeding in the past. Users may purchase and sell Axies of various types (plants, beasts, etc.) and stages (egg, petite, adult) as well as Land, Items, and Bundles on the Marketplace.
Axie Token and Use Cases
The project’s ERC-20 governance token is AXS. Holders will collect rewards for staking their tokens and engage in other project activities (anticipated in 2021). (Including votes and games). Players will also be able to earn $AXS through participating in user-generated content projects and playing various games within the Axie Infinity Universe.
AXS will be unlocked on a predefined period 65 months after the initial public offering. The first circulating supply is 59,985,000 AXS, which is 22.22 percent of the overall supply.
Axie Infinity requires the connection of an Ethereum wallet and the confirmation of registration via a Google or Samsung account. One of the project’s partners is Samsung (along with HTC, Maker, Binance and other large-scale technological players in the market). Axie Infinity is ranked second in the Games category on Dapplist.cointelegraph.com, with a total balance of 284 ETH and roughly 160 daily users.
Axie Infinity desires to be a mature game with a flourishing ecology, a strong community, and a strong community. Axie Infinity is a beautiful game experience for Pokémon or Final Fantasy lovers to immerse themselves in.
Axie Infinity has approximately 27,000 players as of February 2021. If the game can attract a more extensive player base, it will undoubtedly increase the ecosystem’s worth. As previously stated, the Ronin sidechain is being introduced, along with a free-to-play version, to promote even more growth.
Axie Infinity allows users to acquire both AXS and SLP tokens through a variety of methods. After that, tokens can be traded for other cryptocurrencies. Axie Infinity has already shown to be profitable for certain gamers.
Market Analysis
Axie Infinity has been posting massive gains while most cryptocurrencies have been struggling to resume their respective uptrends. Now, AXS could be gearing up for a correction before its uptrend continues.
Axie Infinity could be due for a correction.
The popular NFT game’s AXS token has surprised cryptocurrency enthusiasts in recent weeks as it continues to surge without any apparent signs of slowing down. Over the past five days alone, the AXS price has skyrocketed by a whopping 253%, from a low of $14 to reach a new all-time high of $50 on July 24.
The sudden upswing seems to have been anticipated by the Tom DeMark (TD) Sequential indicator, which presented a buy signal in the form of a red nine candlestick on the 12-hour chart.
This technical index has proven to be quite effective at determining where Axie Infinity is going next. Since the token’s inception in November 2020, the TD has forecasted local tops and bottoms.
Interestingly, the TD Sequential now indicates that Axie Infinity is trading at overbought levels after presenting a green nine candlestick on the 12-hour chart. The bearish formation is indicative of a one to four 12-hour candlesticks correction before the uptrend resumes.
If validated, AXS could drop towards the 61.8% Fibonacci retracement level at around $28.
Axie Infinity’s on-chain activity further validates the pessimistic thesis as the number of new daily addresses joining the network is declining.
IntoTheBlock’s Daily Active Addresses model shows a bearish divergence between network growth and AXS’ price action. The number of new daily addresses being created peaked on July 13 at 306 addresses while prices were rising.
Such market behavior indicates that investors could be booking profits, increasing the downward pressure behind Axie Infinity.
Despite the multiple sell signals that Axie Infinity presents, investors must pay close attention to the recent all-time high of $50. A bullish impulse that pushes AXS above this crucial price point could be significant enough to invalidate the bearish outlook and lead to higher highs.
Under such unique circumstances, this cryptocurrency could target $72 before reaching the psychological $100 level.
Closing thoughts
The AXS token’s future is dependent on the Axie Infinity game’s playability and popularity. The game is enjoyable to play, well-developed, and has plenty of opportunities for improvement. It has also shown its worth over the last two years, and new features are on the way to attract even more gamers to join. Although fundamental and technical analysis does point to a bright future for Axie Infinity, your ultimate investment choice should be based on your portfolio, risk tolerance, and in-depth investigation.
