Blockchain News

Axie Infinity: Decoding if a Spike in Interaction can Shift AXS’s Trend

During the 2022 market cleanse, the crypto gaming industry, which includes Axie Infinity [AXS], rarely performed well. However, AXS appears to have reversed the pattern it demonstrated for most of 2022 since the beginning of 2023.

Sentiment presented a report detailing the Axie ecosystem’s performance over the last three weeks on January 20. According to the disclosure, the play-to-earn gaming environment has seen some lows, but primarily highs.

According to Dapp Radar, there was a 59% increase in Unique Active Wallets (UAW) used on the AXS network. In this case, the measure described how engaged users were with decentralized applications on a smart contract platform.

While this did not equate to an increase in daily active users, it did mean an increase in gaming engagement and in-game AXS NFTs.

This was the situation until January 14th. However, data from the worldwide dApp tracker revealed that active wallet engagement has decreased. The UAW had been down 5.79% in the previous 24 hours as of press time. Because of this drop, the volume of transactions fell to $743,290.

The loudness drop spread to the discernment towards AXS. The overall sentiment toward Axie, according to Santiment, was -0.255. This meant that while social volume was likely high, the overall perception was most likely relatively low.

Despite the drop, on-chain data revealed that AXS’s circulation in the last seven days increased to 2.31 million. This increase indicated an increase in AXS traded across wallets over the aforementioned time period. A greater increase, on the other hand, could fuel short-term sell pressure for the coin.

Following the spectacular performance, there was a spike in demand for native tokens on the Axie Infinity chain. According to Santiment statistics, AXS’s sister token, Smooth Love Potion [SLP], too accompanied AXS on a UAW increase.

However, the SLP surge peaked on January 14th. AXS had lost 12% of its value from the time it reached its peak to the time of writing, while SLP had lost 11%. This caused Axie Infinity’s network growth to plummet to its lowest point in a long time.

To sum up, AXS’s situation at press time may appear to be precarious. However, it was a significant improvement over 2022. To build on the progress, the Axie on-chain status may require significant recovery in various areas.


Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.