Blockchain-based play-to-earn project Axie Infinity's native cryptocurrency AXS rallied after CoinDesk reported on Axie's card-based strategy game debuting on the Apple app store.
AXS surged over 12% from $7.16 to $8.04 after the news, becoming the top gainer on CoinDesk Indices' leaderboard. At press time, AXS was on track for its best single-day percentage gain since Jan. 22. The cryptocurrency fell by over 3% in April, registering its third consecutive monthly decline amid the token unlock and risk aversion in the broader market.
Initially, Apple store users across Latin America and Asia in countries including Argentina, Colombia, Peru, Mexico, Venezuela, Indonesia, Malaysia and Vietnam will have access to the card-based game called Axie Infinity. The game already has 1.5 million installations across all platforms. Sky Mavis, the creator of the play-to-earn project, plans to expand the game's outreach via Google and Apple mobile users.
Open interest spikes
AXS's price rally was accompanied by a sharp increase in the notional futures open interest or the dollar value locked in open futures contracts. That's a sign of an influx of new money into the market.
The notional open interest rose to over $75 million from nearly $40 million a day ago, reaching the highest since February, according to Coinglass.
However, the leverage appeared skewed to the bearish side, as funding rates in the perpetual futures market remained negative. Negative rates indicate the dominance of bearish short positions in the market.
Investors probably shorted perpetual futures contracts to protect the long position in the spot market from a sudden price drop, a reflection of lack of confidence in the sustainability of the price rally.
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