The Axie Infinity native token AXS has gained over 130% in just 3 days after trading at $14.09 on the 20th of July to create a new all-time high of $32.70 today. This coin has however retraced as it currently stands at $30.29 for the day, as of the time of writing this report.
What is causing the rally
The price of AXS is rallying due to speculation that it is going to revolutionize the blockchain-enabled gaming industry forever as its use case allows users to play the game and earn real rewards that can be used to trade in the game or converted to real fiat currency.
At the current price, AXS has appreciated over 5,200% year-to-date which puts it on the list of best-performing digital assets this year.
The token’s bull run is attributed to its rising popularity as a play-to-earn gaming service. The coin operates on the Ethereum blockchain as a Pokémon-like game, where players adopt, breed and trade digital pets called “Axies” in the form of non-fungible tokens (NFTs).
An Axie infinity developer, Sky Mavis, called the game “a nation with a real economy.” This is because it allows people to shape economic policies and practice local governance in a metaverse. The virtual environment has gained traction among users, as its total revenue closed toward $120 million in July versus $1.92 million at the beginning of this year, representing a 6,150% growth.
Axie Infinity is focused on creating a gaming ecosystem that allows for a play-to-earn model. The game rewards players for the effort and time they put in both playing and growing the ecosystem.
The Axis ecosystem uses two token assets to transfer value in the game; Axie Infinity Shards (AXS) and Small Love Potion (SLP), which can be earned through gameplay and exchanged for Fiat currency.
Users are incentivized to play the game as Axie reported that many of its players were making $5 a day by playing Axie but the income has surged to $20 in recent times.
Investors who choose to invest are advised to use the dollar-cost averaging approach as the cryptocurrency space is very volatile.