- Web3 gaming leader AXS Token surged more than 40% in one day, reaching a four-month high of $13.94, according to Queen Gekko.
- It is reasonable to conclude that the spike may be related to the AXS token opening event.
4.8 million AXS tokens are scheduled to be unlocked on Monday. The event will unlock approximately 1.8% of the total token supply of 270 million, according to TokenUnlocks. Many experts and users associate the positive market reaction with the event.
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Notable gainers: #AXS (AxieInfinity) is up 39.5% today ahead of the token open that will happen later today. : https://t.co/Mr7OEZ30vb pic.twitter.com/9wI8OpMUWB
— CoinGecko (@coingecko) January 23, 2023
AXS struts for impact
Axie Infinity’s AXS and SLP tokens have gained 45% and 7%, respectively, in the last 24 hours. According to Coinalyze, the value of dollars locked in perpetual open futures contracts has also increased by more than 95% to nearly $100 million at press time.
The most recent market action can be associated with the token unlock event. However, some users on Twitter have also shared that the Chinese New Year celebrations may be the reason.
Several major cryptocurrencies rebounded around the Chinese New Year. It gained nearly 9%, ETH is up 8.7%, and GALA is up 37% since the eve of the year of the rabbit.
Surprisingly, token unlocks are bearish because the events enable investors to capitulate and take profits. Tokens are locked in for considerably long periods of time to prevent holders of large amounts of tokens from selling or manipulating the price.
Despite the bearish trend around them, the token unlock has become an event for the project teams to share positive news that can counteract the bearish impact. As a result, many users are expecting a big announcement from the team in anticipation of unlocking.
Despite market conditions, it has consistently pushed content to its users in 2022. The developer plans to maintain its momentum and expand its ecosystem in 2023.
Save the pace
Sky Mavis, the parent company of Axie Infinity, previously announced that it will bring in more game studios to build the next generation of Web3 games on the Ronin Network. In addition, the developers shared that they are keen to expand its ecosystem in 2023, with the launch of the official Sky Mavis Developer Portal.
The developers also released the alpha version of its latest groundbreaking wilderness experience, Axie Infinity: Homeland, on December 28th. Similar to Farmville will host players to harvest, craft, fight and build their homeland.
The Play-to-Earn leader has done relatively well in completing milestones in the roadmap and plans to maintain the same momentum for 2023.
on the flip side
- Axie Infinity will unlock 1.45% of the total supply at the next coin unlock event scheduled for April 17th.
- The platform’s token, AXS, has gained more than 100% this year, crossing the 200-day simple moving average for the first time since 2020.
- Furthermore, according to ActivePlayer, a gaming statistics website, Axis has registered more than 400,000 players in the last 30 days, with over 113,000 players at the time of publication.
Why should you bother
Although it has not been determined whether the news of the token unlock caused the rally, many game projects may have started withholding important information from players due to bearish trigger events.
However, although the token unlock event has passed, Axie Infinity has not yet shared any news. Regardless of market conditions, Axie Infinity has continued to deliver on its promises and build the infrastructure for Web3 gaming.
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