Cryptocurrency tokens connected with non-fungible token (NFT) games like Axie Infinity have made outsized gains in 2021, with the Axie Infinity crypto AXS price surging by as much as 30,621% from the start of the year to its all-time high of $165.37 in November.
Axie Infinity is a Pokemon-inspired play-to-earn metaverse game built on the Ethereum blockchain, where players can collect, raise, breed and battle digital pets called ‘Axies’. As of 10 December, Axie Infinity was approaching three million daily active users who had bred a combined 10 million Axies.
The metaverse is set to be a key theme in the cryptocurrency space in 2022, so what is Axie Infinity and how does it fit into that space?
What is Axie Infinity (AXS)?
Using AXS, cryptocurrency investors can trade the two in-game currencies that are central to the Axie play-to-earn universe: Axie Infinity Shards (AXS) and Small Love Potion (SLP). Players can also profit from breeding and Axie trading on the platform’s marketplace. However, it is important for investors to understand how the Axie Infinity game works to get a better picture of the AXS and SLP tokens before investing in them.
How does Axie infinity work? Each Axie is an NFT, the price of which depends on the rarity of its characteristics. Players can choose and breed parent Axies together to obtain an offspring with specific traits.
Land in Axie Infinity is tokenised and can be freely traded among players. Landowners who find AXS tokens on their plots will have the first rights to any resources spawning on their land, according to the white paper.
Users must buy three Axies to enter the game. As the cost of Axies has risen, a ‘scholarship’ system has emerged in which Axie owners (who are known as managers) lend out their Axies to players (who are known as scholars). The scholars can then earn tokens on behalf of the manager and will share in the rewards.
According to officials at Sky Mavis, Axie Infinity has around 2.5 million players around the world. It has become well known as a play-to-earn game that provides a source of real-world income for players in developing countries such as the Philippines, Vietnam and Brazil. It has also made a significant contribution to inflation-hit economies such as Venezuela by enabling many poorer families to put food on the table.
While the Axie Infinity game was built on the Ethereum blockchain, high transaction fees and a need for faster processing prompted game-development company Sky Mavis to build the Ronin sidechain to handle Axie Infinity transactions.
In its first month, Katana gained 409,000 unique users and more than $1.2bn in liquidity was deposited. Users can now farm RONCOIN (or RON – the ecosystem token of the Ronin blockhain) tokens by providing liquidity for the AXS/ETH and SLP/ETH pools.
The developers are focusing on launching the Land game (known as Project Kingdom or K) in 2022, where players will be able to use their Axies to build bases, collect resources and compete against others.
AXS token price retreats from highs
The price for the Axie Infinity token, which launched in November 2020, started this year at $0.538, climbing over the summer as cryptocurrency markets rose and then dipped in late September as the markets retreated.
The AXS price peaked at an all-time high of $165.37 on 6 November as metaverse tokens rallied after Facebook announced its rebranding as Meta Platforms on 28 October. The Facebook rebranding was intended to highlight its focus on social and business interactions in the metaverse.
The AXS price has dropped from previous highs along with other cryptocurrencies, as the cryptocurrency market has come under pressure. The AXS token was trading down to a low of $89.63 on 20 December, and at around $98.06 on 29 December.
Are you looking to make an Axie Infinity investment? Read on to see the outlook for the AXS price in the future.
Axie Infinity (AXS) coin price prediction: Targets for 2022, 2025 and 2030
In the short term, technical analysis data from CoinCodex generally concluded that now was not the best time to buy AXS as of the time of writing on 29 December. Altogether, 20 indicators gave bearish signals, with only five indicators giving bullish signals.
The Hull moving average and stochastic relative strength index (RSI) were among the sell signals, while the average directional index (ADX) and the RSI remained neutral. The three- to 100-day simple moving averages (SMAs) and exponential moving averages (EMAs) were bearish, while the 200-day moving averages (MAs) and EMAs were giving bullish signals.
However, CoinCodex predicted that AXS price could rise by 31.30% to $127.99 by 5 January.
The AXS crypto price prediction from algorithm-based forecasting site WalletInvestor projected (as of 29 December) that the token could climb in value from $111.716 at the start of 2022 to $331.629 by the end of the year. By the end of 2023, the site predicted the coin will trade at $556.012, and by the end of 2025, it could reach $1,002.46, according to the data.
DigitalCoin’s Axie Infinity (AXS) coin price prediction was more cautious, estimating it could average $152.03 in 2022, $167.22 in 2023 and $188.88 in 2025. By 2028, it expects AXS to trade at an average of $418.47, based on historical data.
The AXS/USD forecast from PricePrediction was in between the WalletInvestor and DigitalCoin forecasts, projecting the price could average $153.37 in 2022 and rise to $488.93 in 2025, soaring to an average of $3,166.21 by 2030, based on machine learning.
It’s important to keep in mind that cryptocurrency markets remain extremely volatile, making it difficult to predict accurately what a coin’s price will be in a few hours, and even harder to give accurate long-term estimates. As such, analysts and algorithm-based forecasters can and do get their predictions wrong.
We recommend that you always do your own research, and consider the latest AXS coin news, market trends, technical and fundamental analysis, and expert opinion before making any investment decision. Bear in mind that past performance is no guarantee of future returns. And never invest more than you can afford to lose.
Axie Infinity is one of several legitimate play-to-earn games that have gained popularity in the pandemic-stricken 2021. It is strongly positioned to become part of a growing metaverse trend in 2022.
Cryptocurrencies are highly volatile assets, making them high-risk investments. Whether AXS coin is a good fit for you as an investor depends on your personal circumstances and risk tolerance. You should evaluate the level of risk you are prepared to accept before investing, and remember never to invest any money you cannot afford to lose.
As of 29 December 2021, forecasting sites predicted the AXS price could rise in the coming years. However, there is a high volatility in cryptocurrency prices, which makes it especially difficult to project prices in the future – therefore, forecasters can and do get their predictions wrong.
You can earn SLP and AXS tokens as rewards for playing the game. You can then trade these on exchanges for other cryptocurrencies or convert them into fiat currencies as preferred. You can also earn yield by staking tokens.
There are currently 60.9 million AXS coins in circulation, out of a maximum supply of 270 million, giving AXS a market capitalisation of more than 5.9 billion at the time of writing (29 December), according to CoinMarketCap.
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