Blockchain gaming came to the limelight in 2021 when Axie Infinity (AXS) launched on the Ethereum network. The protocol implemented a P2E model that caught the attention of gamers and blockchain enthusiasts.
In no time, the protocol’s native token caught the eyes of investors, reaching an all-time high of $157 in 2021. However, like many other altcoins, AXS was massively hit by the impact of the bear market. Currently, AXS trades around $6.6, and the gaming token could see a gradual price appreciation in the coming days.
Where could AXS be heading, and could this be a good time to buy? Let’s answer that question using technical analysis.
Technical Analysis of the Axie Infinity (AXS) Token
Image Source: TradingView
The AXS token recently formed a double bottom pattern on the daily timeframe. A double-bottom chart pattern indicates that the bears could be running out of fuel. When the price fails to form a lower-low, there is a high tendency for a reversal.
Interestingly, the chart above reveals that a price reversal to the upside has been triggered. While AXS currently trends upwards, the crypto token’s growth is relatively slow. For example, Solana and Dogecoin have increased about 10% in the past week. On the other hand, AXS has seen a 5% increase in the past week. Steadily moving up the trend, AXS could break the $7 resistance in the coming days as it continuously forms higher and lower highs.
The Axie Infinity Project
Axie Infinity is a blockchain-based game with a play-to-earn model. Axie Infinity has a similar architecture to the famous Pokémon game. The blockchain game originally ran on the Ethereum network. However, due to scalability issues on the Ethereum blockchain, Axie Infinity created its side chain (the Ronin network).
The Ronin network is compatible with the ETH network. Gamers can seamlessly transfer assets from Ethereum to the Ronin network. The development of the Axie Infinity project proved that blockchain has a key role in the gaming industry. Interestingly, the AXS project has an interesting backstory behind its development.
The AXS Team
AXS was developed in 2018 by Sky Mavis. Sky Mavis is a blockchain game development studio based in Vietnam. Trung Nguyen and Aleksander Larsen also contributed to the project’s development. Trung Nguyen is now Axie Infinity’s CEO, and the project has 25 full-time employees, with most having a solid gaming and blockchain ecosystem background.
How does AXS Work?
Axie Infinity has a unique and engaging model. Its gameplay incentivizes active participation, and users have several ways to earn assets.
The AXS Gameplay
Axie Infinity gamers have to own gaming characters called axies. Axies can be purchased on the website with ETH. The axies are then bred to have unique characteristics that will enable them to battle with other axies. Gamers can collaborate to battle other players, and axies can be sold on the platform’s peer-to-peer NFT marketplace. The more unique an axie is, the better the chance to command a higher value.
The Axie Infinity game was designed to enable gamers to earn NFTs and crypto while playing and winning. As users engage in battles and conquer territories, they get rewarded with NFTs that can be traded for crypto. Interestingly, the Axie Infinity ecosystem supports community engagement. Users can contribute to generating content and also have governance rights.
The AXS Token
AXS is Axie Infinity’s native token. Holders can use the token to vote for developments in the Axie ecosystem. Notably, the Axie Infinity game also has the SLP token. SLP is different from AXS. SLP is earned when players win battles. Gamers usually sell off SLP when it is earned.
AXS has a maximum supply of 270 million tokens. Currently, 116.95 million tokens are in circulation. The AXS token was launched in November 2020, and its supply has been gradually released since then. AXS’ supply is expected to be completely vested in April 2026.
AXS can be staked on decentralized exchanges that support the staking of ERC-20 tokens. Some centralized exchanges also allow users to stake AXS. Although, in such cases, the CEX serves as an intermediary for smart contract interaction.
The AXS token is used in trading and purchasing non-fungible tokens. AXS can also be staked to earn rewards and serves as the ecosystem’s governance token.
Here’s how the AXS token was distributed:
· 4% was allocated to the private sale
· 7% was allocated to advisors
· 8% was allocated to the ecosystem fund
· 11% was released at the public sale
· 20% was reserved for the game’s earning model
· 21% was allocated to the founder
· 29% was reserved as rewards for staking
AXS: Future Development Plans
The AXS team developed the Ronin sidechain to enable more developers to build gaming products compatible with the AXS protocol. Further, the team launched the Mavis hub in 2022 for the same goal. The Axie Infinity Foundation will use 2024 to build on its goal of attracting more developers to build on the protocol. The team will also focus on outdoing its competitors and creating more innovative gaming products before the next crypto bull run begins.
How is AXS Different from Pokemon?
Axie Infinity is a blockchain game, while Pokemon does not run on a blockchain network. Additionally, in the Axie Infinity game, players can earn non-fungible tokens that can be converted to crypto or even fiat money, but this can’t be done in the Pokemon game.
What is AXS used for?
AXS is the governance token of the AXS ecosystem. Holders can propose updates and vote for or against in-game alterations. AXS can also be staked to earn interest.