AXS, the native cryptocurrency in blockchain game Axie Infinity has been in a strong parabolic run since the last week of June and it appears that the uptrend remains strong.
ASX is currently one of the top winners after delivering an impressive 11.76% gain in the past 24 hours, allowing it to recover slightly after its recent bearish pullback in recent days. The cryptocurrency is currently trading at $ 44.49, which is notably lower than the all-time high of $ 53.50 it hit on July 27, but still an impressive price level considering it was worth just $ 2.85 in June, just a month before.
On the technical side of AXS, the selling pressure in recent days has been easing as indicated by the volume, paving the way for today's rally. The selling pressure was likely due to the expectation that the price was oversold and a market correction would occur. However, the price could have more upside potential as the RSI suggests that it is approaching the oversold region.
Why is AXS increasing in price?
The current performance of AXS is not only a reflection of the recent bull run in the cryptocurrency market, but also the growing demand for the token as a result of the increasing popularity of the Axie Infinity game. The game's win-win mechanics have made it one of the most engaging games of this year so far. The Pokémon-style game so far manages to attract more than 300,000 daily active users, with countries like the US, Venezuela and the Philippines contributing the highest numbers of users.
Axie Infinity's user base has grown rapidly as new users, especially from developing countries, join in the search for alternative sources of income. People in those countries don't earn much, and as such the ability to earn between $ 500 and $ 1,000 per month playing a digital game that has real rewards that can be redeemed for cash is a great incentive. The game's rewards mechanics aren't the only reason for its popularity. Game characters can also be sold or leased and the real estate in the game appears to be fetching high prices as well. For example, a portion of the game's real estate sold for $ 1.5 million earlier this year.
The popularity of Axie Infinity also comes from the fact that it is the first blockchain game to have a properly working mechanism and reward players. It is also the first game of its kind to show how blockchain technology can transform the gaming industry. Those who entered early while the AXS price was still low have a huge advantage given that its price has been going up, making it difficult for Axies to pay.
What is the future of AXS?
AXS is likely to continue to grow if the Axie Infinity game continues to gain popularity. Right now, it's still in its early stages and could grow into something bigger. There are other likely outcomes, but the future of the native token looks good considering its low supply.