28 February, 2024

Axie Infinity AXS Under Pressure Amidst Whale Activity

1 year ago

22 Nov, 2023

According to the latest data from the on-chain analysis bot WhaleStats,  AXS, the main utility token of the popular play-to-earn (P2E) online game Axie Infinity, seems to be a popular choice among the top Ethereum whales, as it has reportedly surpassed blockchain oracle LINK.


AXS plummets

The token’s popularity among the top ethereum whales could be directly linked to its plummeting prices. The price of AXS has just dropped to a 16-month low level of $8.99 at the time of writing, per CoinMarketCap (CMC) data.

CMC reports that the last time AXS was at this level was on July 7th, 2021. The 58th largest cryptocurrency by market size has seen a decline in the number of people actively playing the game that uses its non-fungible tokens (NFTs).

Live data from ActivePlayer shows that the average number of monthly players for Axie Infinity has also decreased to 22-month lows. According to data gathered over the last 30 days, the online video game created by Vietnamese company Sky Mavis had an average of 701,000 active users.

ActivePlayer data reveals player activity has been on the decline ever since the $625 million hack of Ronin Bridge in March. Ronin Bridge is an Ethereum sidechain for Axie Infinity.

More selling pressure Inbound

Furthermore, it could face significant selling pressure as $215 million worth of the project’s AXS tokens is set to be unlocked on October 24, as the project’s vesting period expires, according to data site TokenUnlocks.

To prevent early investors and insiders from selling out as soon as new investors come in, a “vesting period” stipulates that they must keep their funds in the company for a specified period of time.

According to TokenUnlocks, approximately half of the soon-to-be-unlocked AXS tokens will be allocated to members of the developer team ($57 million), advisers ($25 million), and early investors in a private sale round ($20 million). These holders may sell tokens to generate profits.


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