By
Bhushan Akolkar
May 10th, 2024
Blockchain protocol Axie Infinity is driving major engagement amid renewed craze for gaming. As a result, the in-game currency or native token AXS skyrocketed 40% on Monday.
Although the overall cryptocurrency market traded flat on Monday, October 4, Axie Infinity (AXS) delivered a major rally. AXS, the native token of blockchain-gaming protocol Axie Infinity, hit an all-time high (ATH) of $155 skyrocketing 40%.
Factors that Support Axie Infinity in Its Hitting New ATH
The play-to-earn game Axie Infinity has created a massive frenzy in the market. It presents some very interesting income opportunities to the players. Besides, users can also play the Axie Infinity blockchain game purchasing Axie characters as NFTs.
Similar to CryptoKitties, it allows players to collect, breed, raise, battle and trade these characters using AXS tokens. Thus, AXS works as an in-game currency for the Axie Infinity blockchain protocol. As of date, Axie Infinity is currently generating an annual revenue, upwards of $1.5 billion.
But despite the price of AXS surging so fast, the AXS demand continues to remain high driving major network activity and engagement. As per the recent Forbes article, crypto analysts Joseph Young explains:
“The main reason why the user activity of Axie Infinity continues to increase despite the increase in the price of AXS and Axie NFTs is the rise of guilds. Guilds, like YGG, Avocado Guild, and GuildFi, essentially allow users to borrow Axie NFTs to play Axie Infinity, with a revenue share system.”
These guilds reduce the entry barrier for new players of Axie Infinity. The recent rally in Axie Infinity (AXS) helped it attain a spot in the top twenty cryptocurrencies by market cap.
Crypto Market on Recovery Mode
After a break on Monday, the crypto market looks set on the road to recovery. Bitcoin (BTC) is up 3% today and is currently trading at $49,309 with a market cap of $928 billion. The world’s largest cryptocurrency is currently eyeing a breakout above $50,000.
Any move above $51,000 shall trigger the next bull run with BTC possibly making its way to the all-time high. Another positive indicator for Bitcoin price to rally further is the exchange supply. As per on-chain data provider Santiment, the BTC exchange supply has reached a 30-month low.
👍 With #Bitcoin on the cusp of returning to $50k for the first time in four weeks, this comes as the percentage of supply on exchanges has now dropped to its lowest level since June 4, 2019. The 30-month low further de-risks chance of a major selloff. https://t.co/pejKn7byGS pic.twitter.com/ifgTSzocGK
— Santiment (@santimentfeed) October 5, 2021
On the other hand, a majority of the altcoins are currently trading in the green as of press time. Meme cryptocurrency Dogecoin (DOGE) has gained the most today and is up 10% trading at $0.23. Earlier this week, Dogecoin co-founder Billy Markus suggested the possibility of introducing NFTs to the Dogecoin blockchain.
On his Twitter handle, Markus talked about the ideal future for Dogecoin. However, much of the talk was around non-fungible tokens (NFTs). He also talked about getting the Dogecoin ecosystem to the Ethereum blockchain network.
But it’s not alone DOGE that is rallying today. Elon Musk‘s tweeting a picture of Floki Flunkpuppy has triggered a rally in dog-themed meme cryptocurrencies. The Shiba Inu (SHIB) price has also jumped 55% as of press time.