Airdrop, Staking Announcement Power Axie Infinity’s AXS Token to Record High

The token has doubled in price since the announcements.

AccessTimeIconOct 4, 2021 at 12:35 p.m. UTC
Updated Oct 4, 2021 at 3:07 p.m. UTC

Lyllah Ledesma is a CoinDesk Markets reporter currently based in Europe. She holds bitcoin, ether and small amounts of other crypto assets.

Axie Infinity’s AXS token has climbed 41% in the last 24 hours to a record $153. The surge comes days after the play-to-earn game announced that it would distribute over $60 million worth of tokens to its early adopters and the launch of staking capabilities.

Since the Sept. 30 announcement, the price has more than doubled from $73, according to data from TradingView.

CoinDesk - Unknown

According to the AXS staking dashboard, since the announcement more than 12 million AXS have been staked. Staking is the process of participating in transaction validation on a proof-of-stake (PoS) blockchain, similar to mining. In a PoS blockchain, anyone with the minimum required balance of the relevant cryptocurrency is able to validate transactions and earn staking rewards.

“Staking yields on AXS remained exceptionally lucrative (189% APR), even with 12.4 million AXS staked already and growing, leading to a real risk of a supply crunch for AXS,” said Denis Vinokourov, head of research at Synergia Capital. “This could result in exponential, albeit likely unsustainable, upside, and in the end leading to erratic and choppy price action.”

The advance is also likely sapping away demand from other gaming and NFT-related assets as investors jump on momentum trades, according to Vinokourov.

Axie Infinity’s growth this year has surged, pushing its market cap to $9.3 billion. In countries where the earnings from playing Axie work out better than the average income, traffic is high. The Philippines ranks first, Brazil second and Venezuela third for traffic, according to data from Similarweb.

“The rise in price can be attributed to Axie’s growing popularity and how easy it is to get into,” said John Pangilinan, partner at Signum Capital. “I also feel that Axie has done some pretty smart marketing, such as their scholarship program.”

The Axie community offers scholarships to aspiring players so that they can get started without having to pay the high cost for a “starter team,” currently around $1,065. These scholarships are not official in-game features, they are done by a trusted community member who gives out a free Axie team and often takes a cut of the player’s earnings.

“I don’t think there’s another competitor that has this kind of price movement right now, therefore the attraction is high for both players and retail investors,” Pangilinan said.

The blockchain gaming startup also recently announced on the Scoop podcast that it will be launching a new decentralized exchange. According to The Block, it will be built on “Ronin,” an Ethereum-linked sidechain purpose-built for Axie Infinity.

“This will remove some of the friction that exists for players who have to move their tokens to platforms,” said Vinokourov. “The move will improve user experience and further solidify AXS’ market leading status in the world of blockchain gaming,” he added.


Read more about

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Lyllah Ledesma is a CoinDesk Markets reporter currently based in Europe. She holds bitcoin, ether and small amounts of other crypto assets.

CoinDesk - Unknown

Lyllah Ledesma is a CoinDesk Markets reporter currently based in Europe. She holds bitcoin, ether and small amounts of other crypto assets.

Trending

1
CoinDesk - Unknown
OpenSea Reports Email Data Breach

An employee at an outside contractor tasked with managing OpenSea email newsletters copied the list of customer emails and shared it with an outside party, OpenSea says.

CoinDesk - Unknown
2
CoinDesk - Unknown
Grayscale Sues SEC Over Bitcoin ETF Application Rejection

The SEC rejected Grayscale's application to convert its Grayscale Bitcoin Trust to an exchange-traded fund earlier Wednesday.

CoinDesk - Unknown
3
CoinDesk - Unknown
SEC Rejects Grayscale’s Spot Bitcoin ETF Application

Grayscale has said it was prepared for “all possible post-ruling scenarios."

CoinDesk - Unknown
4
CoinDesk - Unknown
Coinbase is Reportedly Selling Geo-Location Data to ICE

Watchdog group Tech Inquiry reported the new details about Coinbase’s three-year contract with the U.S. Department of Homeland Security.

CoinDesk - Unknown