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

Data from Cointelegraph Markets Pro and TradingView exhibits that since bounding off a low of $47.92 on Sept. 21, the value of AXS has stormed 145% greater to set up a new document high at $118.00 as its 24-hour buying and selling quantity surged from $421 million to $1.95 billion.

AXS/USDT 4-hour chart. Source: TradingView

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

AXS launches staking

The development of decentralized finance in 2021 has shone a highlight on the power of crypto holders to put their tokens to work and earn a yield by way of 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 to date, holders have already staked almost 9.eight million AXS in simply two days.

AXS staking dashboard. Source: Axie Infinity

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

Axie Infinity is presently providing an APR of 240% for stakers with the rewards coming from a devoted pool of 78.three million AXS tokens which were put aside by the workforce.

AXS airdrops tokens to early adopters

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

According to the workforce, 10,000 wallets have been chosen primarily based 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 energetic customers just like the pseudonymous Twitter person ‘Arctic’ acquired bigger allocations that at the moment are value almost $500,000, whereas much less energetic accounts acquired smaller allocations which can be nonetheless nonetheless important by way of greenback worth, particularly within the extra economically deprived components of the world the place many Axie Infinity gamers reside.

Related: NFT trading game Axie Infinity launches AXS staking program

The rising recognition of play-to-earn gaming

Another motive for the current 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 really the game 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).

Top 5 gaming protocols by the 90-day change in USD worth. Source: Messari

The P2E gaming sector of the crypto ecosystem has been gaining momentum in current months as customers start to uncover the advantages of taking part in a game that rewards participation, as opposed to the dominant free-to-play mannequin which affords in-game purchases however leaves customers with little to present after months of gameplay and funding.

According to information from Cointelegraph Markets Pro, market situations for AXS have been favorable for a while.

VORTECS™ Score (inexperienced) vs. AXS worth. Source: Cointelegraph Markets Pro

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

The NewsQuake™ service from Cointelegraph Markets Pro registered two important news bulletins prior to the value rise, together with a itemizing announcement from Bitstamp change and the workforce’s announcement that AXS staking had launched.

The views and opinions expressed listed here are solely these of the creator and don’t essentially replicate the views of Every funding and buying and selling transfer entails danger, it is best to conduct your personal analysis when making a determination.