The native token of blockhain-based play-to-earn game Axie Infinity (AXS) has skyrocketed by more than double its price on a quarterly time-frame, to break new values; sitting above $155.
As it stands, AXS’s price is now down by 9.4% over the past six hours, dropping from its new all-time high. However, the spike to hit the ATH is looking at a 14.6% increase in the past 24 hours of trading. While the increase might seem bullish, the bears are threatening to show a correction as the platform risks a bounce back down if the token is facing potential overbuying.
The relative strength index (RSI), using metrics and technical analysis to show how the token is doing and its predicted trajectory, is pointing towards overbought conditions – and the dropback for the NFT value might bring it down by nearly 40%.
According to Axie’s website, the current annual percentage rate (APR) is a whopping 187% and while the platform and demand for using the token don’t seem to be declining, purchasing the token right now might be a risky move for traders looking to hold or buy-for-profit.
How to earn AXS
As a play-to-earn game based on the blockchain, players on the platform buy, train, and battle Axies in tournaments. If players win seasonal tournaments, they earn AXS which can be traded for fiat or used for in-game purchases. Axie Infinity’s other native token, known as Small Love Potions (SLP) can also be earned from winning and succeeding in battles and they can be reused to train and breed new Axies.
The game has gained a massive amount of popularity since it launched not even a year ago and the platform boasts a user coast of over 1.85 million players. Since April, the volume of players on the platform has increased by over 4,500% with the revenue on the game earning a tidy $815 million sum in the same amount of time. As it stands, the current volume of players and money locked into the game makes the firm behind Axie the fifth-highest ranked game in terms of value in global market capitalisation.