Axie Infinity (AXS) Breaks Out Above $50
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Axie Infinity (AXS) is making a claim on becoming one of the hottest new crypto projects. The NFT marketplace platform is growing in popularity, at least based on reported collectible token sales. Axie Infinity has built up a very active gaming community in the Philippines. The country is one of the early adopters for multiple crypto projects, boosting cross-border transfers and serving as a source of passive income.
AXS market prices peaked above $53, while the market recovered and BTC prices remained close to the $40,000 tier. AXS later backtracked to $46.02, on volumes above $5B. This trading activity is unusual for a newly arrived project.
AXS depends on Binance exchange trading, though its leading pairs have limited liquidity and the potential for significant slippage.
Are Axies Taking Over the NFT Space
Fans of Axie Infinity claim the project is taking the top spots in terms of sales and adoption. Axie Infinity is a project focused on the Asian community.
NFT statistics, however, rank Axie Infinity on position 61 based on a mixed indicator of sales, engagement, retention and the underlying value of assets. Currently, NFT projects achieve relatively lower, but stable sale and resale volumes.
Art Blocks Curated has taken the top spot on the OpenSea NFT market, and CryptoPunks remains an all-time popular, taking the second spot. Axie Infinity marks relatively lower sales on the OpenSea market.
The price of separate NFTs is relatively lower, at around 0.3 ETH per character pack. One of the reasons for this is that the mission of Axie Infinity is to build up a gaming world, and not reach top prices for collectible value.
How Risky is Axie Infinity
Like most digital token projects, Axie Infinity opens investors to various risks. As a speculative trading asset, AXS is volatile and mostly used for its potential for relatively fast gains. Most recently, AXS dipped from its temporary peak above $26, erasing 50% of its value before climbing to a new high.
AXS is still in a price discovery stage, and may see similar price moves with the potential for a significant drop from its highs.
Other risks are purely technological, and may expose new users to fake wallets. The game and the NFTs are accessible through browser add-ons, and has no native wallet. The project warned of faked apps presenting as a native Axie Infinity Ronin wallet.
The best approach is to check only the official wallets and add-ons for AXS and the collectible NFTs. There have also been reports of hacked, or faked Axies characters being sold, which may diminish their value, or create problems within the Axies Infinity game.
Is AXS a Risky Pump
The rapid rise in AXS prices, which also happens counter to the general market trend, has led some traders to believe the price may be manipulated. AXS has gone through a freefall in the past, and will be challenged to keep up with its new all-time highs.
AXS also has a derivative market on the Binance exchange, which leads to temporary situations of short squeezes. At the same time, the AXS asset may be prone to rapid selling on the spot market.
AXS mostly relies on centralized exchanges, and is yet to establish liquidity on the Uniswap V3 exchange. However, the absence of decentralized trading pairs may be beneficial, as rug pulls and rapid price shifts are more probable on the decentralized market.
Some predictions suggest AXS can continue the upward hike to as high as $100. The asset was up more than 168% in a single week. The chief source of growth is the social media popularity, boosted by the adoption of the Axies Infinity game.
What is the SLP Market
AXS has a secondary token, SLP, which is used in the creation of new Axie characters. SLP, or Smooth Love Potion, along with AXS, is a key to using the Axies Infinity game.
SLP has a relatively small market on the Binance exchange, and trades around $0.27. SLP is also highly volatile, easily moving between $0.36 and $0.10 in rapid crashes. SLP trades at volumes above $136M per day.
SLP recently appeared in one of the Binance Exchange native wallets, easing access to the token.
SLP is an Ethereum-based token, and can be sent and received through MetaMask, with a small ETH payment. As with AXS, SLP carries the risk of being sent to a fake Ronin wallet app. As of July 2021, the SLP market is actually more liquid and has lower potential slippage compared to the AXS market. Still, investment in AXS, SLP and actual NFT Axie characters is riskier compared to older digital coins. For now, the project has not expanded significantly into the DeFi space, and most earnings happen through the game and the NFT secondary sale marketplace.
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