Axie Infinity (AXS) Hits New All-time High of $150, Blockchain Gaming Demand Rises

04. Oct 2021 Posted by Akolkar B on News

Blockchain-based gaming protocol Axie Infinity has been gaining a lot of traction recently. Earlier today, October 4, 2021, the native governance token of Axie Infinity (AXS) rallied a staggering 40% hitting a new all-time high of $150 and entering a price discovery mode.

The AXS price has double in the last four days of October amid a very high demand for the gaming token. In the last three months, the AXS price has rallied 15x or we can say a staggering 1400%.

The Ethereum-based blockchain game Axie Infinity has seen exponential growth over the last few month. The network activity and engagement has also skyrocketed. As per the latest update, Axie Infinity has touched $30 billion valuations recently.

The Axie Infinity blockchain game allows users to buy Axie characters as NFTs. It allows users to collect, breed, raise, and trade the Axie characters in the form of AXS tokens. Thus, this native token AXS serves as an in-game currency on Axie Infinity blockchain.

The Axie Infinity blockchain gaming protocol has been gaining solid traction recently and has generated a revenue of a staggering $1.5 billion. With the surge in the price of AXS, new players might be feeling the heat and refrain from participating.

However, despite this price surge, the user activity for Axie Infinity continues to increase. The recent Forbes article explain this noting: “The main reason why the user activity of Axie Infinity continues to increase despite the increase in the price of AXS and Axie NFTs is the rise of guilds. Guilds, like YGG, Avocado Guild, and GuildFi, essentially allow users to borrow Axie NFTs to play Axie Infinity, with a revenue share system”.

Thus, guilds help to remove the entry barrier for new players on Axie Infinity and allow them to play without spending big amounts at the beginning.

Furthermore, the Axie Infinity platform rewards investors handsomely for staking the AXS tokens. The annual percentage return (APR) on the Axie Infinity platform stands at a staggering 187%. So far, there are more than 12.5 million AXS coins staked on the platform. The total value of these staked coins in USD currently stands at $1.84 billion.

Thus, approximately 20% of the total circulating supply (61 million) has been staked on the platform. This supply demand ratio has helped the AXS price to skyrocket in recent times.