Massive airdrop and AXS staking catapult Axie Infinity to a new all-time high

Airdrops have turn out to be the cryptocurrency ecosystem’s equal of stimulus checks over the previous couple of years and additional proof of this may be evidenced from standard protocols like Uniswap and dYdX which rewarded their early adopters with token drops that at the moment are value $30,000 to $2 million.

The most recent protocol to shock its userbase with a pockets fattening airdrop was Axie Infinity (AXS), a blockchain-based battle sport that has risen in prominence over the course of 2021 as customers embrace its play-to-earn (P2E) gaming mannequin.

Information from Cointelegraph Markets Professional and TradingView reveals that since bounding off a low of $47.92 on Sept. 21, the value of AXS has stormed 145% larger to determine a brand new report excessive at $118.00 as its 24-hour buying and selling quantity surged from $421 million to $1.95 billion.

AXS/USDT 4-hour chart. Supply: TradingView

Three causes for the latest surge in AXS worth over the previous two weeks embody the introduction of staking options for the AXS token, the discharge of a group airdrop early adopters and the growing reputation of play-to-earn gaming protocols.

AXS launches staking

The expansion of decentralized finance in 2021 has shone a highlight on the power of crypto holders to place their tokens to work and earn a yield via offering liquidity or staking.

In an effort to seize a few of this momentum, in addition to enhance the general tokenomics of the AXS token, the workforce at Axie Infinity introduced the launch of staking capabilities on Sept. 30. This excited members of the group, and so far, holders have already staked almost 9.8 million AXS in simply two days.

AXS staking dashboard. Supply: Axie Infinity

And it’s not simply your common crypto consumer getting in on the staking motion, as latest tweets present different gaming platforms within the crypto ecosystem, together with Yield Guild Video games, have introduced that they’re now staking their AXS holdings as a approach to assist improve the worth of their respective ecosystems.

Axie Infinity is at present providing an APR of 240% for stakers with the rewards coming from a devoted pool of 78.3 million AXS tokens which were put aside by the workforce.

AXS airdrops tokens to early adopters

A second purpose for the spike in worth and exercise for AXS was this week’s group airdrop which rewarded customers who engaged with the protocol previous to October 26, 2020.

Based on the workforce, 10,000 wallets had been chosen based mostly on a snapshot that was taken on Oct. 26 to obtain a share of the 800,000 AXS airdrop, relying on the pockets’s stage of exercise.

The extra lively customers just like the pseudonymous Twitter consumer ‘Arctic’ acquired bigger allocations that at the moment are value almost $500,000, whereas much less lively accounts acquired smaller allocations which are nonetheless nonetheless vital when it comes to greenback worth, particularly within the extra economically deprived components of the world the place many Axie Infinity gamers reside.

Associated: NFT buying and selling sport Axie Infinity launches AXS staking program

The rising reputation of play-to-earn gaming

Another excuse for the latest development seen in Axie Infinity is the energy of the P2E gaming mannequin which many analysts say would be the breakout sector in 2021.

Axie Infinity was truly the sport that kicked off the P2E rally earlier within the yr and this momentum translated to an uptick in different P2E protocols like Illuvium (ILV), Chain Guardians (CGG) and MyNeighborAlice (ALICE).

High 5 gaming protocols by the 90-day change in USD worth. Supply: Messari

The P2E gaming sector of the crypto ecosystem has been gaining momentum in latest months as customers start to find the advantages of taking part in a sport that rewards participation, versus the dominant free-to-play mannequin which gives in-game purchases however leaves customers with little to point out after months of gameplay and funding.

Based on knowledge from Cointelegraph Markets Professional, market situations for AXS have been favorable for a while.

VORTECS™ Rating (inexperienced) vs. AXS worth. Supply: Cointelegraph Markets Professional

As seen within the chart above, the VORTECS™ Rating for AXS climbed into the darkish inexperienced zone on Sept. 26 and reached a excessive of 87 round 35 hours earlier than its worth started to extend by 55% over the subsequent three days.

The NewsQuake™ service from Cointelegraph Markets Professional registered two vital information bulletins previous to the value rise, together with an inventory announcement from Bitstamp trade and the workforce’s announcement that AXS staking had launched.

The views and opinions expressed listed here are solely these of the writer and don’t essentially replicate the views of Cointelegraph.com. Each funding and buying and selling transfer entails danger, it’s best to conduct your individual analysis when making a call.