Axie Infinity Up By 20.43% – Time To Buy AXS?

The price of Axie Infinity (AXS) has been on a tear recently. The token surged all through the weekend and hit its all-time high of $21.45 today. This record height and rapid growth have encouraged investors to buy AXS.

The overall success in the growth and adoption of Axie Infinity has been more evident since the protocol migrated from its former sidechain in the Ethereum network.

This recent Axie Infinity transition alongside its token surge indicates that now might be the best time to buy AXS.

Axie Infinity: NFT Marketplace

Axie Infinity is a digital marketplace for popular online games built on the Ethereum blockchain. Axie Infinity was founded in 2018 by a game developer called Sky Mavis. Trung Nguyen and Aleksander Larsen also co-founded it.

Axie is simple to play and adopts a wildly popular free-to-play model. Here, players can earn income through non-fungible tokens, breeding, battling, and trading digital pets called Axies.

These Axies are NFTs with different attributes and strengths. The protocol draws inspiration from CryptoKitties.

The governance token of the Axie Infinity ecosystem is AXS which stands for Axie Infinity Shards.

The tokens are used to participate in key governance votes. It gives tokenholders a say in matters concerning the protocol, including how funds in the Axie Community Treasury are spent.

AXS is an ERC-20 token secured by Ethereum’s proof-of-work (POW) consensus mechanism.

Initially, Axie Infinity was using the Loom network, a sidechain that runs on the Plasma scaling solution on Ethereum. However, earlier this year, it migrated to a custom-built sidechain on Ethereum known as Ronin.

Ronin was developed by Sky Mavis, the firm behind Axie Infinity. It is designed to support almost instant transaction confirmations and reduced gas fees, among others.

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AXS Price Climbs As Protocol Adoption Soars

The AXS token has been surging lately. At press time, AXS was trading 20.43% higher at $20.83, according to CoinMarketCap.

The token started the year at $0.5966 but has since grown steadily. It hit the $1 mark for the first time when it traded at $1.74 on February 13, and since then, it has continued to rise.

On May 1, AXS jumped as high as $9.58. However, this price was short-lived as the asset plunged to $8.56 on May 7 and further down to $3.90 by the end of the month.

AXS struggled to get back to its $9 range all through June but could not.

This month, however, has been good for the asset coupled with growing interest in NFTs.

The digital collectibles sub-sector has seen exponential growth in the last six months with more institutions launching stand-alone NFT projects.

AXS Technical And Fundamental Analysis

On the trading chart, the AXS price is indicating a bullish pattern. AXS’s 20-day moving average (MA) and 200-day MA support prices are $20.57 and $20.85.

This signals a bullish trend as the asset’s relative strength index (RSI) is above the oversold margin at 41.91.

Market experts expect that AXS will see a major uptrend. According to Digitalcoin, 1 AXS token will trade at $74.81 by the beginning of 2025. Wallet Investor puts its figure at $30.934 by the end of the year and $83.164 in five years’ time.

Axie Infinity’s strong fundamental is one of the reasons the AXS price is surging.

The protocol’s migration to the Ronin sidechain for Ethereum has increased adoption and has helped in getting sponsorship for its gamers.

A crypto influencer, Flying Falcon, donated funds to back 50 Axie Infinity players through a “Sponsor-A-Scholar” program a few months ago. The program is set up by Yield Guild Games (YGG), an open gaming community.

The influencer who goes by the name @Its_Falcon_Time on Twitter donated the Small Love Potion (SLP) tokens for YGG players to breed Axies. This move helped Axie Infinity get more visibility.

According to DappRadar, Axie Infinity is now the biggest NFT market in crypto. With over 27,000 traders involved in moving more than $31.18 million in the first week of July, it has surpassed NFT heavyweights, including NBA Top Shots, OpenSea and CryptoPunk.

Now that the Axie Infinity ecosystem has transitioned to a lower fee environment and the number of daily active users is rapidly growing, this might just be the right time to buy AXS.

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