The rise of blockchain gaming and the Metaverse have quietly pumped not simply Metaverse tokens, however the bigger narrative too. Actually, the identical was highlighted in a earlier article as effectively. Whereas the rising recognition of blockchain gaming tokens is noteworthy, Axie Infinity’s beneficial properties make different tokens’ rise look much less so.
Nonetheless, during the last week, Axie has kind of seen sideways motion after hitting an ATH $165.
Axie wave over or do extra beneficial properties await?
AXS, after charting near 320% beneficial properties 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 worth entrance, the worth motion appeared much less dramatic with Axie noting merely 3.83% each day beneficial properties.
The altcoin, after recording a excessive yearly ROI of near 110761%, has been shifting sideways since 29 October. Actually, Axie’s Relative Power Index additionally appeared overheated, on the time of writing, as Axie’s worth struggled forward of the $156-mark.
So, may the cooling down of the gaming and metaverse mania be behind AXS’s misplaced momentum?
Positive factors nonetheless within the image
Whereas Axie might not have seen monumental beneficial properties during the last week, Axie infused beneficial properties in different tokens. As an example, Axie Infinity just lately introduced the launch of its decentralized change, Katana. This triggered a rally in reward token Easy Love Potion (SLP). SLP charted over 100% beneficial properties during the last two days because it lastly made a comeback after the drop in worth in September 2021.
Based on 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, other than 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 change 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 each 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 trying heated, AXS might even see some short-term pullback. This may current a very good shopping for alternative across the $130-140 degree.