After weeks of tormenting bearishness, the crypto market breathed a sigh of relief as most of the cryptocurrencies noted significant recovery. Likewise, the fourth-biggest gaming token Axie Infinity amazed investors with its impeccable move.
Axie Infinity surpasses expectations
After having declined by 74.72% from its local top of $71, the AXS token finally recovered to some extent when it shot up from $18.45 to $23.98 as of 30 May. And, almost shot up by 52.6% on 31 May when it touched the high of $28.17 before slipping down to trade at $25 at the time of writing.
While other coins were on an incline as well, AXS stood out, thanks to the boost it received from its latest ‘Origin release’ that has kept the token in the limelight for more than two weeks now.
Even so, this was a good opportunity for many investors who were saved from losses. However, less than 17% of AXS holders are still in losses.
The rally also triggered investors to liquidate their positions in the market resulting in $3.5 million worth of shorts liquidations which is the highest liquidation noted in more than two months with the exception of 12 and 13 May’s crash-inflicted liquidations.
The uncertainty surrounding the AXS recovery in the past was also the reason why investors were holding their positions for a long time which resulted in the Open Interest (OI) declining from its peak in October.
Losing more than $400 million in OI, AXS open contracts now amount to just $113 million which shot up in the last 24 hours to $177 million.
Going forward, Axie Infinity’s derivative front could see higher participation from investors as the volatility is rising rapidly, while the same also makes the asset prone to price swings.
However, AXS does have the backing of Bitcoin thanks to the high correlation it shares with the king coin. This helped the token on its road to recovery on 30 May. Now, as long as Bitcoin maintains its momentum above $31k, AXS could continue with its 36.5% rally.