Axie Infinity to release $63M AXS tokens, soars by 48%: is the game making a comeback?

The bear market of 2022 dealt a crushing blow to Axie Infinity, threatening its very existence. As NFT fever cooled, the game was left reeling from the market downturn.

According to activeplayer.io, the game has struggled to keep players engaged, dropping back to player numbers last seen in November 2020. 

Related reading: Axie’s acceleration: The AXS gaming token is up 50% — how long will the high price last and is it a good investment?

Nonetheless, recent developments may have sparked a resurgence in the game and the value of the token, AXS.

CoinGecko data reveals that the AXS token has been on an upward trajectory, with gains across all time frames.

However, particularly impressive is the biweekly time frame, boasting a 48% increase.

The reason for the uptake

On December 28th, the developers of Axie Infinity unleashed “Homeland,” the game’s highly-anticipated land-based experience. Available exclusively to landowners, this alpha release serves as an opportunity for the developers to gather player feedback and test out new features.

1/ It's here.

We’re thrilled to introduce the alpha release of Axie Infinity: Homeland, our flagship land-based experience!

Guide your axies as they harvest, craft, battle, and build their way towards a stronger, more beautiful homeland.

📜| https://t.co/EF7HcUeptS pic.twitter.com/C8VUvDgFE2

— Axie Infinity (@AxieInfinity) December 28, 2022

Despite being in an early stage, the current release already includes essential features such as idle battles, trading, and a leaderboard.

Moreover, on January 30, 2023, the Axie Infinity ecosystem will unleash a massive influx of AXS tokens, valued at $63 million.

The long-term effects of the launch of Homeland and the flooding of the market with a vast number of AXS tokens is yet to be determined.

AXS predictions

As the price of AXS fluctuates, bullish investors are striving to solidify their foothold above the $11.95 support level. Should they succeed, the token may gather enough force to surge past the $12.30 barrier.

Furthermore, the introduction of new tokens may ignite a sell-off, causing AXS to plummet back to its $11.10 support. However, with a transparent roadmap for the game’s progress, investors and gamers can have faith in the direction in which Homeland is headed.

In conclusion

Though a temporary downturn is forecasted for the near horizon, the strides made by the Axie Infinity team should be able to weather the bearish storm.

Additionally, those bullish on AXS should also keep an eye on Bitcoin’s value, as it may have a ripple effect on the token’s future performance.