Axie Infinity has been almost chocked to extinction by 2022’s bear market. During that same year, interest in NFTs declined, hitting Axie Infinity hard.
According to CoinGecko, the token has been experiencing growth in almost all time frames with the biggest being the bi-weekly time frame with an impressive 48% gain.
But recently, the game has been facing some problems. According to activeplayer.io, Axie Infinity has been having trouble retaining players, with the game reverting back to November 2020 levels. However, recent developments might have contributed to AXS’ rise once again.
On-Chain Developments Drive Axie Forward
On December 28th, the devs released Axie Infinity: Homeland, the game’s flagship land-based experience. This release is only playable by landowners which is a core part of the game. The alpha release would be used by the developers to gather feedback and explore new features.
1/ It’s here.
We’re thrilled to introduce the alpha release of Axie Infinity: Homeland, our flagship land-based experience!
Guide your axies as they harvest, craft, battle, and build their way towards a stronger, more beautiful homeland.
📜| https://t.co/EF7HcUeptS pic.twitter.com/C8VUvDgFE2
— Axie Infinity | #AxieOrigins, #AxieHomeland (@AxieInfinity) December 28, 2022
Being an alpha release, it is part of a bigger development timeline as detailed in another tweet. The current release has the basic features like idle battles, trading, and a leaderboard.
The ecosystem will also release $63 million worth of AXS next Monday. It is to be seen how the market could react with Homeland’s release and the unlocking of such a huge amount of tokens in the long-term.
1/ It’s here.
We’re thrilled to introduce the alpha release of Axie Infinity: Homeland, our flagship land-based experience!
Guide your axies as they harvest, craft, battle, and build their way towards a stronger, more beautiful homeland.
📜| https://t.co/EF7HcUeptS pic.twitter.com/C8VUvDgFE2
— Axie Infinity | #AxieOrigins, #AxieHomeland (@AxieInfinity) December 28, 2022
At $11.90, What’s In Store For AXS?
At its current price, AXS bulls are trying to consolidate above the token’s $11.95 support which, if successful, would enable AXS to have enough momentum to break through the $12.30 resistance.
But with the release of a large amount of AXS tokens next week, we might see the token break through above $12.30 and consolidate there.
Image: The Mediaverse
This release of tokens, however, could spark a sell-off which might bring the price of AXS to revert to $11.10 support. Homeland’s clear development timeline could give investors confidence on where the game is heading.
The dip in price that will occur as more tokens are available could also be an opportunity for investors and traders to get in on AXS at a discount.
AXS total market cap at $1.1 billion on the daily chart | Chart: TradingView.com
The token’s price movement in the coming days will be marked with short to medium term volatility with a slight possibility of a sell-off once the tokens are released.
However, on-chain developments should be able to weather the slightly bearish outlook in the short to medium term.
Investors and traders should then monitor how the token may react as unlocked tokens hit the market. AXS bulls could also watch Bitcoin’s price movement as it could also have an effect on the token’s future price movement.
Featured image by Fiverr
