The crypto winter has hit the blockchain games as well as the DeFi market. The best example of this; the popular metaverse coin Axie Infinity (AXS), which has melted 93% from its peak. But worse is coming October 25th…
Axie Infinity (AXS) investors should pay attention on this date.
AXS price has bottomed out at $9.81 after peaking at $165.37 on November 6. However, it faces further declines in the short term. This is because a total of 21,543,000 AXS worth approximately $233 million to unlock on October 25. In other words, 7.979% of the total AXS supply goes into circulation.
Advisors who previously took a share of the supply will now unlock 2,501,750 AXS worth approximately $27 million. They will also release 1,997,500 AXS worth approximately $21.6 million in early investors. In addition, the 5,737,500 AXS awarded to the Axie team are being released, as well as additional AXS distributed as part of stake rewards, win-to-play, and ecosystem funding.
Specifically, advisors and private sales have been unlocked four times in the past, on November 4, 2020, May 3, 2021, October 30, 2021, and April 28, 2022. In each of these unlocks as above, the AXS price dropped.
The new tokens will push the market to sell 4,484,668 AXS worth $48.5 million. With the current trading volume of around $56 million in the last 24 hours, an impact on the price is likely. Add to that the fact that Axie Infinity raised $864,000 in its private sale of 10.8 million AXS in mid-2020. Even if investors in the private sale sell for $10, they’re still making 125x profits. Therefore, a price drop is very likely after unlocking.
Metaverse coin project still tops despite losing players
Beyond potential sales from early investors, AXS investors should be mindful of another issue. The most popular Blockchain game has lost a large part of the user. The chart below shows that the game offers a massive ROI of over 103x from its ecosystems. Then comes The Sandbox (85.3x) and Decentraland (25x).
https://twitter.com/CryptoRank_io/status/158053170590955008
Based on player count, the platform’s average of 850,000 monthly players fell by 21.3% compared to January 2021. The big drop is even more evident when we look at the user numbers from the end of January this year. At the time, it had an average player base of 2.78 million, close to four times the current number.
The latest trend is about the continued slowdown of the cryptocurrency market. Currently, AXS price is trading below its 200-day moving average. With this move, the RSI at 31 is slowly approaching the oversold zone.
Despite the drop in AXS price, Axie Infinity still ranks first as a blockchain game. You can find more details about Axie Infinity from this article of Kriptokoin.com.
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