[ad_1]
Is Axie Infinity (AXS) the new SafeMoon?
- Axie Infinity has migrated from the network to their own Ronin sidechain.
- The business model of playing games to make money provides economic incentives for participants in the ecosystem.
- Before the AXS hype swept the crypto community, Axie Infinity had a binding shareholding structure.
- Traders are increasing their short positions as they continue to show suspicion about the project.
Pokemon, Fortnite, and Axie Infinity caused a huge sensation in the gaming community. Although Pokemon and Fortnite represent the mainstream mobile and computer gaming economy, Axie Infinity has triggered new player emotions. Axie’s success and exponential price increases are particularly noticeable, especially in the current market situation.
Undisputed NFT game
New blockchain use cases disrupt a large part of the creative industry. The NFT in the game field has been expanding steadily. In March alone, the platform sales of NBA Top Shots reached 1.5 million. Although reports about the demise of NFTs have been greatly exaggerated, NFTs are in an evolving stage due to insufficient trading volume.
Axie Infinity has modeled its NFT game as a millennial and Gen Z culture. It is famous for its unique game earning gameplay, and it supports the existing social struggles of users. The Play To Earn video highlights how Axie Infinity can enhance financial self-reliance during times of social and economic stress.
The agreement supporting Axie Infinity has a return rate of 10,000% in 2021. In contrast, leading cryptocurrencies such as Ethereum and Ethereum have only grown by 33% and 213% year-to-date. The data shows that the game has more than 350,000 daily active users, indicating that their blockchain game proposal ability is very strong.
Is it sustainable?
Over-hyped projects usually lead to overestimation of price forecasts. SafeMoon and other cryptocurrency projects that have made headlines in the past show that their positive momentum is unsustainable. As Cantering Clark and other prolific traders have emphasized, strong upward momentum can lead to healthy price corrections. In addition, high-yield financial rewards are often reminiscent of previously announced MLM projects.
The mechanism of Axie Infinity is quite different from those of so-called scams. Unlike SafeMoon’s basic premise, which is to “safely land on the moon” and develop charities, Axie Infinity has a solid business model foundation. As Jeff Dorman pointed out, Axie Infinity already has a clear goal and “a parent company with private equity, a true business model, and fast-growing revenue.” He emphasized that the issuance of AXS is mainly a guiding method to help the company’s development.
In addition, as Vikram Subburaj emphasized, Axie Infinity is “more than just a cryptocurrency”, emphasizing that it provides tangible value to people in emerging economies. In addition, the accelerated success of Axie Infinity can be attributed to their migration from Ethereum to their own Ronin sidechain, enabling faster transactions at lower prices.
on the other hand
- Despite the bullish divergence, Axie’s inflated price may lead to a healthy price correction.
- AXS’s annualized perpetual financing rate is 42.92%, which indicates the bearish sentiment surrounding the token.
- Axie Infinity requires players to trade 3 Axies to participate in the game.
Needles in Axie Haystack
Despite Bitcoin’s downturn, Axie Infinity still reported ridiculous profits, which shocked the market. According to data from Token Terminal, Axie is the top dApp with the highest revenue in the past 30 days. Since the agreement earns 4.25% of each Axie transaction, the total revenue is US$166.6 million.
Data from Non-Fungible highlights that since the peak in May, the NFT market has fallen by 90%; it is worth noting that transactions have shifted from high-priced NFTs to a large number of low-value transactions. In addition, these low-cost NFT transactions can be attributed to the support of Mark Cuban from Axie Infinity, which supports the project with a new A round of financing of US$7.5 million.
Email newsletter
Join to get the other side of encryption
Upgrade your inbox and send our DailyCoin Editor’s Picks directly to your inbox once a week.
[contact-form-7]
You can unsubscribe at any time with just 1 click.
[ad_2]
Source link
