Axie Infinity’s token explodes by 24%: why is this happening and what’s next?

Play-to-Earn (P2E) game Axie Infinity native cryptocurrency skyrocketed more than 24% on the day, as of December 5. As a result, AXS is trading above $8.59. And over the past seven days, the price has soared 29.2%.

Axie Infinity launched in 2018 and is one of the most popular blockchain games. The NFT-based game is based on collecting monsters called Axies, which then fight each other. There are different options for breeding and nurturing pets.

The Axie Infinity ecosystem also has a unique governance token known as Axie Infinity Shards (AXS). In addition to voting on key governance issues, they will give holders a say in the allocation of funds in the Axie Community Treasury. 

What are the reasons?

Well, there were several of them.

1. The roadmap and a number of upgrades to be launched this year may also have played a role. These are Land Gameplay Community and Lunacia SDK Alpha (N/A, converted to builder’s program cookbook for now).
2. The price spike coincided with an increase in trading volume, with traders taking advantage of volatility to make profits.
3. There was also an announcement of more decentralization. The Axie Infinity team said it will work to ensure that community members who are making an effort or significant contribution will be able to make decisions about how to allocate resources to the Axie Infinity ecosystem.
4. In addition, a second season of the game called Axie Origin was released. The season began on November 23 and consists of four stages. The first contained updates to core game mechanics such as Keep, Energy Burst, Bloodmoon, and other settings. The second saw updates related to maps, runes, and amulets. What to expect from the third is not exactly known. And the fourth stage will mark the final launch of Season 2.

Today, a group of over 600 dedicated and impactful community members have been gathered together to help shape the future of @AxieInfinity.

It’s been an honor to play a role in this early process. I’m looking forward to being part of whatever comes next! Let’s keep building 🛠️ https://t.co/8KfZCl4oiz

— Artic 🦇🔊 (@Axie44) December 5, 2022

BTW, in case you missed out: here we have written about the top five interesting metaverse games.

How can I make money on this?

Only time will tell what exactly will happen to the token, and whether it will be able to restore the price. Analysts’ opinions on this are fundamentally different. 

The volatility of cryptocurrencies is high, so you can never predict future price movements with 100% certainty. However, analysts’ predictions can be taken into account.

According to CoinCodex, the AXS price could fall to $4.98 over the next 5 days. That is, by December 10, the token will fall in price by 39.19%. They analyzed the data and concluded that Axie Infinity is showing negative dynamics, as the coin has lost -25.82% in the last 30 days. And 93.10% in 1 year. However, it is important to monitor market sentiment because a 180-degree reversal can always follow. 

Analysts at the Price Prediction believe that this year the price of AXS will remain at $ 7–8, and in 2023 will rise to a level of 12-14 dollars. And then it will grow every year. Naturally, the analysis is based on past fluctuations in token price and current market information.

According to the Long Forecast website, AXS could peak at $9.45, but more likely $7 by the end of this year.

In January 2023, tokens are likely to fluctuate in value between $7.96 and $8.98. Then the price will begin to decline smoothly, and in April 2023 will be in the range of $4–5. Then the tokens will increase in price, but will not exceed $8 until the end of next year. And in subsequent years, it may not reach more than $13.