A new ‘low’ for Axie Infinity in 2023 and what that means

• Monthly average count of players on Axie Infinity has dropped to its lowest so far this year
• After a brief uptick in price, AXS has resumed its downtrend

The number of average monthly players on leading play-to-earn (P2E) blockchain game Axie Infinity [AXS] has plummeted to its lowest level of the year, according to data from activeplayer.io.

Information from the data provider revealed that the average count of monthly players on the P2E platform has fallen from a peak of 2.70 million in February 2022 to less than 500,000 players in August 2023. On a year-to-date (YTD) basis, the monthly player count on Axie Infinity has declined by 19%. 

Source: activeplayer.io

Realistic or not, here’s AXS’ market cap in BTC’s terms

More than enough troubles for Axie 

The last 30 days have been marked by a general decline in user activity on Axie, additional data from DappRadar showed. Over the previous month, the number of unique active wallets (UAW) that interacted or performed a transaction with the protocol’s smart contracts totalled 74,000, logging a 16% decline.

As expected, the low user count on the game culminated in a drop in the number of transactions completed within the period under review. Over the same period, Axie Infinity saw a transaction count of 1 million. This represented an 11% decline on a month-over-month (MoM) basis.

Source: DappRadar

Furthermore, the steady drop in user activity and transactions on the protocol has caused Axie Infinity to see a fall in its revenue. Over the past 90 days, user fees and revenue have both declined by 53%, as per data from Token Terminal.

AXS resumes downtrend

During last week’s trading session, AXS registered a price uptick of 6%, according to CoinMarketCap. 

It saw a significant price hike on 14 September, when its price registered an intraday surge of 19%. The price rally coincided with a sudden hike in the count of unique active wallets on the platform on that day. Data from DappRadar revealed a 77% increment in the count of active wallets on Axie Infinity. 

In addition, there was a significant volume of short liquidations on that day, suggesting that a short squeeze event contributed to the price jump.

As market euphoria begins to wane, AXS has commenced its descent to the pre-14 September price level. At press time, the altcoin was exchanging hands at  $4.51. 

On the spot market, token distribution has outpaced accumulation. An assessment of the token’s Directional Movement Index (DMI) revealed that sellers had market control of the daily market. 

How much are 1, 10, or 100 AXS worth today?

The negative directional index (red) at 23.24 lay above the positive directional index (green), which was stationed at 21.66.

Finally, the token’s Chaikin Money Flow (CMF) trended south at press time and was spotted in the negative zone. This highlighted greater liquidity exiting AXS’s spot markets. This can result in a further decline in the token’s value if sentiment fails to improve. 

Source: AXS/USDT on TradingView