Can you get a second chance at success? That’s what many Axie Infinity investors are wondering as one of crypto’s most popular and hyped-up NFT-based games announced some high-level changes to its inflationary economics.
Now, can the performance of Axie Infinity’s Smooth Love Potion [SLP] token used for breeding new Axies tell us something new about the health of the ecosystem?
Ready Player One
At press time, the AXS token was trading at $62.69, after an impressive jump close to 21% the past 24 hours and a rally of 45% in the past seven days.
If that wasn’t good news enough for bulls, Santiment data revealed that SLP recently saw a breakout of more than 30%. Investors were quick to buy while they had a chance and are surely expecting more returns from the token. For others, this also served as a sign that perhaps Axie Infinity was readying for a new round of wins.
🏺 #SmoothLovePotion blasted off Wednesday to the tune of +30%. #Altcoins have been excellent, and $SLP was one of its high-end performers. The less than 2-year old asset has seen 5.5% of its supply has moved off exchanges in the past 5 weeks. 🚀https://t.co/c0uNTXB9m9 pic.twitter.com/3XG3E1PWCC
— Santiment (@santimentfeed) March 23, 2022
However, is this truly the case?
Well, active addresses are on their way up along with the price of AXS so it seems that investors are regaining their faith in the asset – and upping their interactions with it.
To substantiate this, we can take a look at the asset’s velocity. Overall, there is a rise in an activity involving AXS.
Furthermore, AXS velocity has been relatively steady despite the token’s dramatic surges and drops in price. Consistency may not be a priority for short-term investors, but it certainly helps build a long-lasting community.
Finally, one special metric to study here is social volume. Axie Infinity made a name for itself on the back of its community, which spread its fame far and wide.
However, social volume for the asset has been dropping, in spite of its strong price rally. This is not an ideal sign of sustainable future growth.
So, will Axie Infinity get a second chance at success? The results are mixed. While token prices and activity are encouraging, it will be extremely difficult for AXS to reach its previous hype-induced highs.