Axie Infinity’s revenue continues to collapse
Axie Infinity, a blockchain-based play-to-earn game, generated a measly $988,400 in total revenue in the past week, marking the first time the popular P2E game that allows you to earn SLP coins, less than 1 million amassed since February 2021.
From an hourly point of view, the AXS price is down 1.69% or about $0.35 compared to the values of an hour ago. This looks like a reversal of the previous results, with the price moving up.
Today, AXS price is down 0.87% or $0.18 from yesterday. This reverses the price movement that happened the previous day, which registered an uptrend. The 100 hour time frame proves to be the most consistent and shows a bearish or downward trend.
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Axie Infinity – Still the most popular P2E?
Axie Infinity, the most popular P2E, had a groundbreaking success in 2021. Axie Infinity managed to generate more than $215 million at its peak on August 8, 2021.
In addition, Sky Mavis, the game’s creator, has also secured more than $152 million in funding or a $3 billion valuation in a funding round led by Andreessen Horowitz.
However, things went through tough times when the game went down in November 2021, mainly due to the burn mechanism and the imbalance in SLP issuance.
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There was a surfeit of Smooth Love Potion (SLP), Axie’s in-game token, which was issued with no resources to thoroughly burn or destroy the tokens. Axie suffered from inflation as her SLPs fell in value and failed to boost players.
Sky Mavis recently added a fire mechanism to Axie, but it didn’t work.
AXS is constantly going down
AXS has been consistently down since hitting its all-time high in November 2021 with a price of $166.09.
The downtrend caused AXS to hit a low of $16.20 in May. The support area is around $20, but AXS has not reached it since July 2021.
Axie Infinity has been up since May 28, which is a 52% recovery from the lows it had suffered in May.
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The downward move was then preceded by a bearish forking move, as seen in the weekly RSI, which shows an intact trendline.
The only time a trend can be labeled bullish is when the trendline breaks. If the bounce continues, the next resistance area would be around $50.
Featured image of Bitcoin News, chart of TradingView.com