The ever-buoyant cryptocurrency market that is being observed continues to attract media attention. Today, in the cryptocurrency industry, much attention is given to little-known projects and currencies break through the critical mass of awareness and begin to attract more users.
One example of a new project is the Ethereum Axie Infinity blockchain gaming ecosystem and its AXS token.
As a disclaimer, this article is not a promotion of AXS or Ethereum (ETH). We have not performed due diligence over this coin, therefore you should perform your own research. Investing in cryptocurrency is a high-risk activity and the best cryptocurrencies to invest in are difficult to identify. Cryptocurrency book authors suggest that users only invest with money they can afford to lose owing to the high risk of a total loss of capital, particularly when investing in alt-coins.
Axie Infinity Shards Management Token (AXS)
The AXS token allows its holders to have a direct impact on the Axie Infinity ecosystem. They can vote for any updates, and communicate their decision to use the community treasury. AXS manages the Axie ecosystem on a meta-level. While SLP has an endless amount, AXS is restricted to 27 million. Like many governance tokens, AXS also reallocates value within the ecosystem. For instance, the breeding fee is partly spent in AXS, which is finally attached to the state exchequer.
Also, AXS holders can:
- deposit their tokens to generate income on the management platform;
- improve the properties of the main AXS assets;
- convert axs to eth.
In addition, staking encourages active participation and gradually dilutes passive holders. AXS also allows you to participate in public tournaments and create any kind of content. However, why did the token become so popular among users and reach a new all-time high?
AXS statistics
According to the analytical platform CoinGecko, the trading volumes of AXS in the last 24 hours have exceeded the trading volumes of the main altcoins. At the time of this writing, the token is on the 40th line in the general rating of cryptocurrencies, but in terms of trading volume in 24 hours – on the fourth. Only Tether, Bitcoin, and Ethereum were ahead of AXS.
Another analytical platform, Santiment, reports that the MVRV ratio for AXS has also increased significantly, which is typical in bullish sentiment. The sign lately attained its most expensive level from March this year.
In addition to value, the social dominance of AXS has also shown good growth over the past year. However, developmental activity remained moderate and there was no hint of such a leap. Google Trends also reports that the Axie Infinity query soared several lines in a week and reached a hundred. It remains unclear how long will this last? The token will probably remain at the top in a short time, but what will happen next? The gaming ecosystem network is showing a rather weak development, and the exchange offer is causing skepticism. It’s time for the cryptocurrency market to shake things up, otherwise, such stray projects will become a permanent phenomenon. To find more info, go to Letsexchange.
How does Axie Infinity work?
Axie Infinity is a complex NFT-based gaming ecosystem with varying levels of rarity and utility, built using algorithms. Each Axie is an ERC 721 token with unique characteristics that affect its rarity and usefulness in the game. Sounds familiar? Of course, we already saw this a few years ago with CryptoKitties virtual cats. However, the developers assure that they were inspired by such giants as Pokémon and Tamagotchi.
The competition is sponsored by a way that involves two business tokens: in-game currency (LPT) plus management token (AXS). Breeding Axies is one way for gamers to make money in the game, as new Axies can be traded on the marketplace for ETH. Nevertheless, not all Axies are produced alike: their benefit is defined by their sequence of scarcity and efficiency. It’s worth noting that there is a special Origin Axies offer that is strictly limited to 4,000 copies. Even rarer is the Mythical Axies, which are the smaller class of the original series and make up a third of the series.
Axies’ usefulness is mainly determined by their usefulness in battles. It is partially paid for with the AXS governance token. The probabilistic combination of the characteristics of the two parents, governed by the genetic algorithm of the game, is what determines the characteristics of the newborn being. Axies have a breeding goal, different circumstances changing their benefit, which checks each time they grow. The breeding purpose further limits the majority of all Axies to a perceived height, creating digital pets more unique and important.