![]() Now that the unlock is concluded, it does indeed appear that some AXS holders or derivative traders holding long positions have sold.ĬoinGecko indicates that the Axie Infinity governance token has dropped 1.3% over the past hour. Still, aggregated open interest -which shows the total number of derivative contracts between the entity going short and the entity going long that are open at a given time-suggests traders have been opening more derivative trades over the past few days. It is unclear whether this precise structure is also the case for today’s token unlock. To unwind the short leg of their hedge, traders then began buying futures, pushing the price of AXS up and thus forcing speculative traders playing the downward trend with uncovered short positions to close, causing the price crunch. ![]() Compared to the spot market, in which there are fewer ways to be short, derivatives like futures contracts can easily facilitate hedging. Patel said that traders who were entitled tokens once they were unlocked may have started opening short positions via futures contracts as a partial hedge, which they then began to unwind after receiving their unlocked tokens.įutures contacts allow traders to open positions on an asset's price without needing to own the asset outright. In the weeks leading up to the previous AXS unlock on October 25, 2022, AXS had been significantly underperforming the rest of the market, per Delphi Research analyst Priyansh Patel. Source: Token Unlocks.Īccording to the vesting schedule, however, today's unlock will only be distributed to those who earned staking rewards, which is why there will be fewer tokens unlocked today compared to previous unlocks. Looking at data from TokenUnlocks, today's unlock is significantly smaller than the previous event in November or the upcoming unlock in May.Īccording to Axie Infinity's tokenomics and allocation as described in its whitepaper, the largest share of the tokens unlocked over the entire vesting schedule will be distributed as staking rewards (29%), with the second-largest share going to the team (21%). Showing strong user activity and 100x competitive bridge, AXS is best advisable for those seeking a long-term investment. Unpacking the AXS unlockĪXS currently has a market capitalization of $1.47 billion and a fully diluted value of $3.46 billion, per CoinGecko. Axie Infinity, currently valued at 4.16B with a mark price of 68, has shown great uprising from its initial launch of 0.17 in just a year. Unlocks of vested tokens generally result in bearish pressure, as they dilute the circulating supply and often instigate increased selling pressure.Īnd with today’s unlock now behind the market, it appears that this selling pressure could be underway. While Axie Infinity players use the Smooth Love Potion ( SLP ) token to facilitate in-game functions, holding AXS lets players vote on the game's development and how to deploy the project's treasury. ![]() The coin has given up most of its initial gain and now sits at just 5 above its price before the App Store listing. ![]() The post Axie Infinity Coins Go Crazy After Tokenomics Change appeared first on Coin. Already, the shine of the Axie Infinity: Origins launch appears to be wearing off. This is what makes Axie Infinity different: Katana makes it simple for players of their game to trade tokens amongst themselves without the need for centralized control.$0.04833585 -0.65% Terra Classic (Wormhole) Check Axie Infinity price chart, news, trading analyis, white book. Sky Mavis created Katana as an AMM for use with the Ronin side chain. KatanaĪxie Infinity has a decentralized exchange called Katana, a feature that differentiates it from other play-to-earn games. The annual percentage yield (APY) has decreased over time but is still above average. Axie Infinity’s creator, Sky Mavis, distributed a substantial quantity of AXS tokens to early adopters when the staking platform started. The staking program, which began in October 2021, allows users to earn rewards by holding AXS tokens. The potential for exponentially increasing your investment with Axie Infinity is another compelling argument in favor of buying the token. The wide variety of in-game transactions before NFTs and the growing popularity of play-to-earn games suggest that the gaming industry will continue to adopt a platform that can effortlessly connect with almost any digital transaction. AXS has a circulating supply of 116. Using CoinMarketCap data, at the current price of 31.35, those AXS would now be worth 214,873 - an increase of over 21,000. The gaming industry is a massive market with a value of $173.7 billion, which is expected to reach $315 billion by 2027. Axie Infinity’s price today is US6.99, with a 24-hour trading volume of 25.38 M. As I write this, (July 23), Axie has just hit a new all-time high.
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