- AXS price has been in a strong bearish trend since November.
- It has crashed by more than 90% from its all-time high.
- Sky Mavis will soon start reimbursing the hacking victims.
Axie Infinity price drifted upwards on Friday as investors reflect on the upcoming restart of the Ronin network. AXS token is trading at $16.93, which is a few points above this month’s low of $12.58. It is about 90% below the highest point this year. Its market cap has slipped to about $1.3 billion.
Ronin to restart after hack
Axie Infinity is one of the biggest players in the crypto gaming industry. The platform, which is owned by Sky Mavis, allows people to play virtual games and earn rewards. Gamers are paid using a cryptocurrency known as Smooth Love Potion (SLP). In some special events, these gamers can earn the AXS token, which is widely used for the platform’s governance.
The Axie Infinity price crash started in November when it rose to $160. At the time, Bitcoin was also trading at its all-time high of almost $70,000. Therefore, the AXS crash is mostly in line with the performance of other cryptocurrencies.
At the same time, Axie Infinity has seen the number of active gamers disappear. At its peak, the coin had over 2 million daily active users. Today, the number has dropped to about 658k and the trend is going downwards.
Most people are uninterested in Axie Infinity because of the volatility of the Smooth Love Potion, whose price has crashed by almost 100% from its peak.
Another reason for the crash was the hack of its Ronin bridge that happened in March this year. At the time, hackers managed to steal 173,600 ETH and 25.5 million USDC. At the time, these assets were valued at over $630 million. Today, they are valued at $216 million.
In a statement, Sky Mavis said that it will start reimbursing the victims next month. This reimbursement comes from the $150 million that it raised from Binance and its own resources.
AXS price prediction
From a fundamental perspective, it is hard to recommend AXS token as a good investment. For one, its ecosystem is bleeding users and it seems like Sky Mavis has given up with the crypto aspect of the network.
The daily chart shows that the AXS price has been in a strong bearish trend. It has managed to drop below the important support at $44.0. The coin is still below the short and long-term moving averages.
Therefore, there is a likelihood that the Axie Infinity price will continue falling as bears target the key support at $10. Here are spme of the best altcoins to buy.
