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.