Ethereum-powered Ronin could be Axie Infinity’s next hope for gains

The rise of blockchain gaming and the Metaverse have quietly pumped not simply Metaverse tokens, however the bigger narrative too. In reality, the identical was highlighted in a earlier article as effectively. Whereas the rising recognition of blockchain gaming tokens is noteworthy, Axie Infinity’s beneficial properties make different tokens’ rise look much less so.

Nonetheless, over the past week, Axie has kind of seen sideways motion after hitting an ATH $165. 

Axie wave over or do extra beneficial properties await?

AXS, after charting near 320% beneficial properties over the past three months, was buying and selling at $156.73 on the time of writing. Whereas there isn’t a lot to fret about on the value entrance, the value motion appeared much less dramatic with Axie noting merely 3.83% each day beneficial properties. 

The altcoin, after recording a excessive yearly ROI of near 110761%, has been shifting sideways since 29 October. In reality, Axie’s Relative Power Index additionally appeared overheated, on the time of writing, as Axie’s value struggled forward of the $156-mark. 

So, might the cooling down of the gaming and metaverse mania be behind AXS’s misplaced momentum? 

Beneficial properties nonetheless within the image 

Whereas Axie might not have seen monumental beneficial properties over the past week, Axie infused beneficial properties in different tokens. As an illustration, Axie Infinity not too long ago introduced the launch of its decentralized change, Katana. This triggered a rally in reward token Clean Love Potion (SLP). SLP charted over 100% beneficial properties over the past two days because it lastly made a comeback after the drop in value in September 2021. 

In accordance with Colin Wu, quickly after the discharge, Katana DEX launched on Axie’s Ethereum sidechain Ronin and hit $163.23 million as its transaction quantity rose to $150 million on 5 November. So, aside from the Ethereum-based Ronin, what else has been in Axie’s favor?

Provide dynamics 

Notably, Axie’s provide on exchanges (as % of complete provide) was at its lowest whereas change outflows spiked over the past week. This conduct appeared to focus on AXS HODLers’ conviction to carry. 

Supply: Sanbase

Additional, AXS might’ve additionally pumped due to its volatility i.e. the annualized commonplace deviation of each day returns over a window of time that has been dropping. 

Source: Messari

Moreover, Axie’s Sharpe ratio has maintained an honest quantity, making Axie a relatively safer asset to carry. Nonetheless, with Axie’s MVRV 7-day and 30-day wanting heated, AXS may even see some short-term pullback. This may current a great shopping for alternative across the $130-140 degree.