Upcoming $156 m Token Unlock of Axie Infinity looms as AXS nurses losses
The price of AXS fell by 10.4% two weeks before the unlocking of 18.89 million tokens.
The general market aversion might have caused the fall in the value of the AXS coin.
The value of AXS is likely to fluctuate between $10.65 and $14.28 by the end of the year.
Keywords: AXS’ price drop, Axie Infinity Shards, Axie Infinity, AXS coin, axs price prognosis, Axie Infinity news
Introduction
Token locking and unlocking can affect the price of a cryptocurrency in a remarkable manner. Locking a certain amount of a token reduces its supply while unlocking increases it. The unlocking of $156 million worth of AXS tokens is coming on the background of a sharp AXS’s price drop. In this article, we explore the possible causes of the recent fall in the price of AXS and the related Axie Infinity news.
AXS nurses losses following a sharp price fall
A few days before the unlocking of AXS its price fell sharply resulting in serious loss. Specifically, on 22 April, the price of AXS dropped to $7.85 and since that period it has been moving sideways as The Graph indicates.
AXS coin price - CoinGecko
The Graph shows how the price of AXS fell sharply on 19 April and thereafter maintained a low momentum. At the time of writing AXS, with a trading volume of over $48 million, is valued at $7.88. Basically, its price has decreased by over 10.4% within a fortnight.
axs crypto, with a total valuation of $941.7 million, is the third ranked token in the play-to-earn and gaming category. According to TokenUnlocks, Axie Infinity is set to unlock 18.89 million Axie Infinity Shards (AXS) worth around $155 million.
Axie Infinity started unlocking its tokens in 2020 and has so far unlocked 176.55 million tokens. The 18.89 million tokens which it intends to unlock make about 7% of AXS’ total supply of 270 million. According to the schedule Axie Infinity will unlock a further 77.76 million tokens in 2025.
Read also: Axie Infinity, and Its Mission to Be Decentralized
Possible reasons of axs price dropping
Generally, coin unlocks can lead to price falls as they increase the supply of the cryptocurrency. As a result, the coin holders can sell them thereby creating selling pressure. Usually, some new crypto projects can lock part of their tokens and release them periodically as their demand increases.
Read also: Top axie-infinity Crypto Coins & Tokens by Market Cap
It is important to note that some unlocks do not lead to selling pressure and the subsequent fall in their prices. For instance, AXS did not experience much selling pressure towards the previous unlock events. In fact, the AXS rallied as the unlock events moved closer.
The recent price fall of AXS might have been caused by the market’s risk aversion. This is because, in general, there was selling pressure for the major cryptocurrencies such as ETH and BTC. As an example, BTC lost by 8%. Also, the closures of bullish positions rather than bearish bets or shorts could have contributed to the fall in its price.
What is AXS Axie?
Axie Infinity shards (AXS) are the native tokens of Axie Infinity, a popular play-to-earn game, built on the Ethereum blockchain. This gaming platform enables players to acquire, breed and raise Axie creatures which the players use in battles.
Axie Infinity token - Vecteezy
The AXS coin is also Axie Infinity’s governance token which enables its holders to make decisions on issues related to the development or improvement of the gaming protocol.
In order to participate in governance the AXS holders should stake their Axie Infinity Shards. In addition to participating in its governance, the AXS holders also earn a reward for staking the tokens.
prognosis of AXS Coin
At the time of writing, the AXS token is in an uptrend with a current value of $7.91. However, overall its price fell by 4% within the last 7 days. Also, it reached the highest value of $8.59 within the last 24 hours and a low point of $7.26.
Read also: Axie Infinity (AXS) Price Prediction 2023-2030
AXS’ current supply is 116,136,529 with a total market cap of $920,922,007. As well, its value decreased by $6.07% within the last 30 days indicating that the bearish momentum has persisted for a long period now. According to Bitnation, its value dropped by 30.69% within the last 3 months.
Despite the current loss in value, the market expects the price of AXS to increase during the year. For example, Bitnation predicts that the average price of AXS for 2023 will be $11.90 while its expected maximum price is $14.28.
Priceprediction gives similar predictions with slight variations. It expects the average price of AXS to be $10.65 with a maximum of $11.93. Since AXS had a value of around $6.00 at the beginning of the year, it is possible that it will attain a price of between $10.65 and $14.28 by the end of the year.
Conclusion
The price of AXS fell significantly a few days towards the unlocking of 18.89 million tokens. However, some analysts believe that the general market aversion caused the fall in the price of AXS rather than the pending unlock. Also, the market expects the value of AXS to vary between $10.65 and $14.28 by the end of the year.
Will AXS reach $100?
AXS will likely reach a value of $100 around the year 2030. During 2023 the price of AXS is likely to fluctuate between $6.00 and 14.28. However, its value may rise to around $25 in 2025 and $65.05 by 2030.
How much does AXS cost?
The current price of AXS is $7.91 and is expected to rise within the next few days. However, market analysts anticipate the price of AXS to fluctuate between $10.65 and $14.28 by the end of 2023.
What is the lowest price of AXS?
The lowest price of AXS in 2023 was $6.00, at the beginning of the year. However, since that time its value is constantly increasing despite some spikes and pullbacks.
Is AXS coin a good investment?
AXS coin is a good investment asset since it drives the Axie Infinity gaming protocol currently ranked number three in the play-to-earn and gaming category. Its holders can stake it to earn a reward.
