Metaverse tokens gained quite a bit of notoriety after Facebook’s rebranding in 2021. This decision marked the beginning of a significant bull run for tokens in the metaverse space. Some of these coins include Decentraland (MANA), Sandbox (SAND), Enjin (ENJ), Axie Infinity (AXS) and more.
Axie Infinity coin and its bullish future
Axie Infinity price rallied 5,677% in less than five months, setting an all-time high at $165.25. This exponential upswing has since retraced roughly 72% to where it currently trades – $46.45. Despite this massive drawdown AXS seems to be positioned perfectly to a bullish future based on three on-chain metrics.
The supply of a particular token on an exchange can be used to gauge the potential sell-side pressure. While not all of the tokens on exchanges are there to be sold, some are present as collateral for traders.
Generally, a spike in this metric is used to speculate the sell-side pressure and for AXS, this number has been nosediving. Over the past eight months, the number of AXS tokens held on centralized entities has reduced from 20 million to 2.8 million.
This 86% decline indicates that investors are extremely optimistic about Axie Infinity price performance.
Supplementing the bullishness for AXS is the 365-day Market Value to Realized Value (MVRV) model. This indicator is used to assess the average profit/loss of investors that purchased AXS tokens over the past year.
A negative value below -10% indicates that short-term holders are at a loss and is typically where long-term holders tend to accumulate. Therefore, a value below -10% is often referred to as an “opportunity zone.” Currently, the 365-day MVRV for Axie Infinity is hovering around -46% and has been negative since January 2022, suggesting that the short-term holders are selling at a loss, allowing stronger hands to purchase AXS at a discount.
Therefore, market participants can expect Axie Infinity to see a considerable move in the coming future due to the lack of selling pressure combined with the increase in interest from whales.
Lastly, the supply distribution chart shows that wallets holding 1,000,000 and more coins have begun accumulating AXS since 10 February. The number of such wallets increased from 9 to 100 since this point.
Since May 2021, the hype around Metaverse tokens seems to have died down but the prospects of Axie Infinity appear to be improving quite well.