- Web3 gaming leader Axie Infinity’s AXS token has surged over 40% in one day, reaching a four-month high of $13.94, according to CoinGecko.
- It’s reasonable to infer that the rally could correlate to the AXS token unlock event.
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Top Gainer Watch: #AXS (@AxieInfinity) is up 39.5% today ahead of its token unlock happening later today.4.89M $AXS tokens, representing 1.8% of its total supply, will be unlocked. : https://t.co/Mr7OEZ30vb pic.twitter.com/9wI8OpMUWB— CoinGecko (@coingecko) January 23, 2023
AXS Braces for Impact
Axie Infinity’s AXS and SLP tokens gained 45% and 7%, respectively, in 24 hours. According to Coinalyze, the dollar value locked in perpetual futures open contracts has also increased by over 95% to approximately $100 million at press time.
The latest market action could be correlated with the token unlock event. However, some users on Twitter have also shared that the Chinese New Year festivities could be the reason.
Many major cryptocurrencies have rallied around the Chinese New Year. Bitcoin has gained approximately 9%, ETH has soared by 8.7%, and GALA has surged by 37% since the eve of the year of the rabbit.
Surprisingly, token unlocks are bearish because the events enable investors to capitulate and lock in profits. Tokens are locked for considerably long periods to prevent holders with significant amounts of tokens from selling or manipulating the price.
Despite the bearish sentiment around them, Token unlocks have become an event for project teams to share positive news that could counteract the bearish impact. As a result, many users anticipate a big announcement from the team in anticipation of the unlock.
Despite market conditions, Axie Infinity continuously pushed out content for its users in 2022. The developer plans on keeping its momentum and expanding its ecosystem in 2023.
Keeping Pace
Axie Infinity’s parent company, Sky Mavis, has previously announced that it is onboarding more game studios to build the next generation of Web3 games on the Ronin Network. In addition, the developers have shared that they are keen on expanding its ecosystem in 2023, launching the official Sky Mavis Developer Portal.
The devs have also released the alpha release of its newest flagship land-based experience, Axie Infinity: Homeland, on December 28th. The Farmville lookalike will host players to harvest, craft, battle, and build their homeland.
The Play-to-Earn leader has performed relatively well in completing milestones on its roadmap and plans on keeping the same momentum for 2023.
On the Flipside
- Axie Infinity will unlock 1.45% of the total supply in the next token unlock event scheduled for 17th April.
- The platform’s token, AXS, has gained over 100% this year, topping the 200-day SMA for the first time since 2020.
- Moreover, according to ActivePlayer, a gaming statistics website, Axis has registered over 400,000 players in the last 30 days, with over 113,000 live at press time.
Why You Should Care
While it has yet to be determined if the token unlocking news caused the rally, many gaming projects may have started withholding critical information from players for bearish catalyst events.
However, despite the token unlocking event having passed, Axie Infinity has yet to share any news. Regardless of market conditions, Axie Infinity has continued to deliver on its promises and build the infrastructure for Web3 gaming.
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