According to CoinDesk data, AXS gained more than 40% in the last 24 hours and reached a four-month high at $13.94,
Coinalyze reports that the dollar value of perpetual futures linked to AXS has increased by 156% to $104million in the last 24 hours. A price rally and an increase in open interest indicate that there is more money to be bullish.
Axie Infinity, a blockchain-based trading platform and battling game, allows players to breed, raise and trade token-based creatures called “axies” which can be digitized as nonfungible tokens. Axie Infinity Shards, or AXS, is a governance token. The Axie Infinity video game
According to data source, the latest positive market action might seem confusing. Some 4.8 million AXS coins ($64 million at the price of $13.31), which is the equivalent of 1.8% the total cryptocurrency supply of 270,000,000, will be released later Monday. TokenUnlocks.
Unlocks can be considered bearish catalysts. They allow investors to unlock profits and free up liquidity. Tokens are kept safe to stop the big bag holders, which can be early investors or members of the project’s team, from selling all their coins at once and creating price drops.
Felix Hartmann, managing Partner at Hartmann Capital crypto investment firm, said that the confounding rally is due to the hope that Axie will announce a positive catalyst in order to counter the bearish effect of the token unlock.
“Over the past 12 months, crypto teams have begun to build a track record of saving large announcements for unlock day. Hartmann explained to CoinDesk that this has been happening so often people now expect a bullish catalyst for unlocks.
A similar observation was made by Substack publication Unlocks calendar.
“As we feel positive market momentum teams with upcoming unlocks release good news that was withheld for months while the market was dead,” Unlocks calendar Tweet January 14. “The goal would have positive market movements to boost the price just before unlocks.
AXS is one cryptocurrencies that are gaining ground before the token unlock. Despite a Feb. 2 unlock, the cryptocurrency of the decentralized perpetuals-focused exchange dYdX has risen 64%. This is more than market leaders bitcoin or ether. APT, the native cryptocurrency for layer 1 blockchain Aptos, rallied 40% during the week that preceded its token unlock on Jan. 12. Since then, the cryptocurrency’s value has doubled to $13.
Hartmann stated that “the market has become so reflexive” and called the trend of releasing good news alongside token unlocks unethical.
“I find this trend quite unethical, as you create a buzz to help investors sell retail.” [investors] Hartmann explained to CoinDesk that there are many people who don’t know about unlocks.
Some analysts have long maintained that unlocks enhance the market trend. Large unlocks of tokens can be a complicated event that interacts with market psychology. Large unlocks can be bullish catalysts for bulls and bearish catalysts for bears. They enable liquidity to maintain the trend,” Chris Burniske (co-founder of Placeholder, a New York-based crypto-focused venture company), said. Tweet In April 2021, explaining bullish reactions to token unlocks which took place in the early 2021.
The bull frenzy that gripped the market back then saw bitcoin hit new records almost every week. This month has seen a bull rebound with the leading cryptocurrency bitcoin and ether rallying by 35% each.
AXS gained more than 100% in this month and surpassed the 200-day simple movement average for the first times since 2020. There is still interest in the platform’s bull revival.
Gaming statistics website data ActivePlayer Axie’s live player count for the last 30 days is 432,001, which is the lowest level since October 2020. Between September 2021, May 2022, the gaming platform had more than 2,000,000 players.