In mid-2021, when the price of an NFT on Axie Infinity was at least $200, the volume of money moving within this metaverse was enormous, creating a bullish parabolic slope that seemed to have no end.
However, those bonanza times for the #1 NFT game are over, or, are we facing a healthy corrective process before starting a new rally?
What is the current status of Axie Infinity?
Today the cheapest Axie costs just $7. It takes at least three of these to have a team and start getting SLP (the game reward token).
However, the low price of the SLP, due to the excessive supply, has generated an exodus of players, creating a downward spiral in prices within the Axie Infinity Metaverse.
If we add to this the bear market that the entire crypto market has been experiencing, it seems that there is no reason to expect a major recovery in the short term.
Even so, if you thought about investing when prices were hovering around historical highs, then the current moment could be an excellent opportunity. The fundamentals have even improved for this game.
The team is moving forward despite setbacks
Despite the fact that the development team postponed the release of an update to the game several times, this new version is already online, in its testing phase.
However, players are still waiting for the full release of the Metaverse, with a virtual world formed by plots where users will be able to interact.
One of the most important setbacks that Axie Infinity had to face, was the hacking of its Ronin network, during which more than $600 million was stolen. It was a serious blow to trust, but they managed to replenish almost all the money with financing from external agents such as Binance.
The speed of SLP issuance has also been a big problem for the team, and it is that with so much supply, the price tends to go down. Being the means by which players are rewarded, the price of this token is undoubtedly what users who enter the game for profit see.
The development team has repeatedly taken steps to reduce the supply, however, some have been late. Meanwhile, the general opinion of users is that more systems are needed to burn SLP, such as axies customization, lotteries, internal tournaments, etc.
According to Axie Worlds data, today they burn almost 15 times less than what is broadcast. A few weeks ago, when there were more active players, it was burned on average 60 times less than it was mined. The ideal with a token as inflationary as the SLP, would be to burn 1 slp for every 2 issued.
We start with RON, a native of the Ronin network, and where all the operations of the Axie Infinity Metaverse are currently running.
Today we see from the RON vs USDT daily chart a big downtrend, following the widespread sentiment of the crypto market, and supported by the recent hack of the Ronin network.
This token was launched only three months ago, while it had a great performance during its first days of birth, now with a price of $0,45 it has lost almost 90% from the all-time high of $4,32.
Being a currency that is used only to pay network commissions, and serve as a governance token, its price goes hand in hand with the adoption of the game as such. Because we are in a moment of user migration, the only thing that could happen was a price drop.
However, it is a token with a fairly controlled supply. Its small market capitalization of $78 million, tells us that the potential profit could be quite large.
Bear markets in the crypto market have always hit bottom, and it is possible that this time we are already close to it. In the RON chart, we already see the price submerged in an extreme oversold zone.
AXS
While RON functions as the governance of the Ronin network, AXS fulfills the same role but within the game.
Let’s remember that Ronin plans to be more than Axie Infinity, so it is pertinent to treat them separately, even though they are so related to each other.
After a mega bullish rally that took the AXS token to an all-time high of $165.37, today the price is $21.74. Again, discounts of almost 90% for those who trust the project.
The short/medium-term trend is strongly bearish, and there are no signs of a reversal yet. The least negative that we can see in the near future is a lateral behavior. The demand zone in which the price is located could be a good starting point; if it is lost, the ground would be cleared for sales up to $9.33.
Despite what has been said, the fall is already widespread; the space for sales is running out.
SLP
Unlike the previous two tokens, the case of the SLP is a little more difficult, and this is demonstrated in the price chart.
The Smooth Love Potions token is generated with each game played within Axie Infinity, so the supply is highly inflationary. Thanks to this, the price of it has been wrapped in a strong downward spiral, even though the market capitalization has been increasing.
Only with drastic measures to reduce the supply and issuance, could the SLP token create a healthy uptrend.
Currently, on the weekly chart SLP vs USDT we can observe an important bearish divergence, while the price reaches historical lows. It is possible that at least a major rally will happen soon; but I repeat, drastic measures are still needed to think about a sustainable uptrend.
All our publications are of an informative nature, so in no case should they be regarded as investment advice.
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