Axie Infinity’s token has seen a surge in recent days, with its Unique Active Wallets (UAW) rising by 77% within the past 24 hours. This is despite the fact that the number of people using the platform has dropped by over 11% in the past 30 days.
The price of AXS jumped from $4.61 to $5.13, although it has since pulled back and is now down 96% from its highest point.
Axie Infinity is one of the biggest blockchain gaming platforms in the world. It allows users to play games and earn rewards using Smooth Love Potion (SLP) coin. At its peak, it had hundreds of thousands of players, but recently, the platform has seen its popularity decline and thousands of people have abandoned it.
Data from DappRadar shows that the number of Unique Active Wallets in Axie Infinity has dropped by over 10% to 76.6k in the past 30 days. Additionally, the volume of incoming funds into its smart contract decreased by 34% to over $22.36 million and the total balance in the network is now over $550 million.
By comparison, other popular platforms like Decentraland and The Sandbox have fewer than 4,000 unique monthly users.
It is not clear why the Axie Infinity token surged on Thursday. One reason could be that it has risen in line with other digital currencies, such as Bitcoin, which is now trading at over $26,700 and Ethereum, which is trading at $1,635. The total market capitalization of all cryptocurrencies has jumped from $1.06 trillion to more than $1.06 billion.
It is likely that the surge was due to the increase in UAW, as well as the increased traffic to the site, which saw an increase of 84%, or 49k, in the past 24 hours.
Looking ahead, the daily chart shows that the AXS token price is in a strong downward trend and is trading below the 50 day moving average. It has also retested its key resistance level of $4.62. Therefore, it is likely that the price will continue to decline and target the key support at $4.
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