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 previous article as properly. Whereas the rising reputation of blockchain gaming tokens is noteworthy, Axie Infinity’s features 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 features await?
AXS, after charting near 320% features 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 value entrance, the value motion appeared much less dramatic with Axie noting merely 3.83% every day features.
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, might the cooling down of the gaming and metaverse mania be behind AXS’s misplaced momentum?
Positive aspects nonetheless within the image
Whereas Axie could not have seen monumental features during the last week, Axie infused features in different tokens. As an example, Axie Infinity lately introduced the launch of its decentralized alternate, Katana. This triggered a rally in reward token Easy Love Potion (SLP). SLP charted over 100% features during the last two days because it lastly made a comeback after the drop in worth in September 2021.
According to 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, aside from 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 alternate outflows spiked during the last week. This habits appeared to spotlight AXS HODLers’ conviction to carry.
Additional, AXS might’ve additionally pumped due to its volatility i.e. the annualized customary deviation of every 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 wanting heated, AXS may even see some short-term pullback. This could current a great shopping for alternative across the $130-140 degree.