Why is Axie Infinity Price Surging Continuously despite Losing Players on its Platform

Key takeaways:

• Axie Infinity’s average monthly players at the lowest point since November 2020!
• Axie’s average monthly players touched a all-time-high of about 2.78 million in January 2022!
• AXS price has more than doubled since the beginning of 2023!

Additional Read: Ethereum Price Prediction

AXIE INFINITY AVERAGE MONTHLY PLAYERS ON A 2-YEAR LOW!

Axie Infinity, one of the most popular blockchain based gaming platforms of all times, and one that was practically responsible for ushering in this movement on a large, grand scale. During the global lockdown amid the Covid-19 pandemic in the year 2020 – this non-fungible token-based online play-to-earn video game had provided a means for earning an income via playing games online for many people who had suffered the brunt of the global lockdown and lost their jobs.

However, there has been an interesting trend in the most well known blockchain based gaming metaverse world. The year of 2021 saw a massive rise in the number of players on the platform. According to data from activeplayer.io, the play-to-earn metaverse game once had millions of monthly players, peaking out at about 2.78 million in January of 2022. Take a look at this chart below.

Source: activeplayer.io

Axie Infinity had a monthly average of about 2 million players for 8 consecutive months starting from October 2021 to May 2022. However, since May – the average dropped down drastically, down below the 1 million mark and by November, the monthly player count slipped below 700,000.

However, the raging bear market of 2022 hit hard on this novel industry and in about 11 months since the peak, December 2022 saw about 468,805 players, a low not seen in over two years, since November 2020!

And even now, in the past 30 days – this metaverse game saw only about 432,000 active players on its platform.

Read More: MANA Vs Axie Infinity

AXS PRICE TELLING A DIFFERENT STORY!

AXS/USD | Source: Tradingview

While the play-to-earn, non-fungible token based metaverse gaming platform, Axie Infinity might be losing active players on its game – the price of its native token, AXS is telling a different story! In fact, since the beginning of the year, AXS price has more than doubled in value – going from $6 at the beginning of the year to $13.2 as of writing this article, scripting a earn 120% rally in the past three weeks.

From a technical point of view, AXS price is trading above its 50 and 200 day moving averages too and is also potentially headed towards a golden crossover of the two moving averages. AXS price has also broken into the consolidation zone between $12.5 to $19.5. $12.5 was a crucial resistance level for the token and the token price has been able to breach that with relative ease and we could see some more rise from here as the next level of resistance would be $19.5 – about 50-55% away from current market price (CMP).

Despite this rise, what must also be kept in mind is that AXS price was one of the worst losers in the bear market of 2022 – where it lost over 93% of its market capitalization. Even as of writing, AXS price is down more than 92% from its all-time-highs of about $170.

AXS DEVELOPMENT ACTIVITY AT A HIGH!

AXS Development Activity | Source: Santiment

While the falling average monthly players in Axie Infinity is a concerning sign, data from Santiment shows that the development activity for the token is near a one-year high! Development activity for AXS had touched a high in the middle of November 2022, and since then has fallen a little bit however, it is still close to the high and going strong.

This is a positive sign for the gaming platform as a whole as this indicates that newer updates and developments in the project might be underway and could provide the users with some newer features!

CONCLUSION

Thus, in conclusion – while Axie Infinity’s average monthly players on the ecosystem might be at a two year low – what must also be considered is that we did go through a whole year of raging bear market in 2022. That alone could be responsible for the decreasing interest in crypto as a whole and also the fact that the bear market had resulted in the native token of the platform, AXS to lose over 93% of its market capitalization. That is a very significant sum and a lot of players could be losing interest as the earning potential has gone down severely. However, as we see a recovery, in line with broader market sentiments, and newer platform updates – we could see a potential return of players back onto the platform soon!

Prices as on 23 January, 2023.