Axie Infinity rose to $ 120 after posting a massive airdrop for early adopters and starting staking for AXS.
Airdrops have become one of the triggers of the crypto ecosystem in recent years, and further evidence of this is provided by popular protocols like Uniswap and dYdX that rewarded early adopters whose airdrops are currently worth between $ 30,000 and $ 2 million.
The latest protocol to surprise its user base with an airdrop is Axie Infinity (AXS), a blockchain-based fighting game that will be a hit in 2021 when users adopt the play-to-game model.
Data from TradingView shows that the AXS price has risen to $ 1.95 billion from its low of $ 47.92 on the 21st.
4-hour frame AXS price chart | Source: TradingView
Three reasons for the recent rise of AXS in the past two weeks are the introduction of staking features in AXS, the release of an early adopter airdrop, and the growing popularity of AXS.P2E game logs.
AXS starts staking
DeFi’s development in 2021 sheds light on the ability of crypto holders to let their tokens live and benefit by providing liquidity or staking.
In an effort to capture some of these dynamics and improve AXS tokenomics, the Axie Infinity team announced the introduction of staking features on September 30th. This has excited the community members and they are looking forward to it. Today, owners have nearly 9.8 “million AXS in just two days.
AXS. Staking dashboard | Source: Axie Infinity
And it’s not just the average crypto user getting into the staking action, as recent tweets show that other gaming platforms in the crypto ecosystem, including Yield Guild Games, have announced that they are currently using AXS to help Increase the value of their respective ecosystems.
– Yield Guild Games (@YieldGuild) October 1, 2021
“We are currently putting all AXS ($ 16.45 million) in our vault. Off to delicious AXS staking rewards!
Axie Infinity currently offers stakers an APR of 240% APR with rewards from a dedicated pool of 78.3 million AXS.
Airdrop AXS for early adopters
The second reason for the spike in AXS prices and activities is this week’s community airdrop, which rewards users who interact with the log before October 26, 2020.
One user tweets:
“Thank you Axie Infinity! I have 4,905 AXS. Worth more than almost anything I had this time last year.Being part of the Axie community has been an incredibly rewarding experience, both socially, intellectually and financially. “
According to Axie Infinity, 10,000 wallets were selected based on a snapshot taken on October 26th to receive a portion of the 800,000 AXS Airdrop, depending on wallet activity.
More active users like Arctic received larger rewards, now worth nearly $ 500,000, while less active accounts received smaller but still substantial rewards, especially in the economically disadvantaged parts of the world where many Axie Infinity players live.
– squarrre (@Sorareuk) September 30, 2021
“I feel great to be an early successor to Axie Infinity, received 68 AXS and ready to breed. Believe in Growth ”.
Decentralized exchange launched
In an interview with The Scoop podcast, Jeff Zirlin, co-founder and chief development officer of Sky Mavis, said his company would develop a DEX for its game.
This DEX is built on Ronin, Axie’s private sidechain on Ethereum, and is used for token trading in the game’s ecosystem.
Axie Infinity is hoping the DEX platform will help keep players as from now on they will not need to transfer tokens outside of Axie in order to trade. Mr. Zirlin announced:
“Users can buy and use tokens directly on the same platform without having to send tokens across multiple bridges as is the case today.”
Jeff Zirlin did not provide much information on this DEX, probably because the product is still under construction.
The growing popularity of play-to-earn games
Another reason for Axie Infinity’s recent growth is the strength of the P2E gaming model, which many analysts say will be a breakout area in 2021.
Axie Infinity is indeed the game that kicked off the P2E rally earlier this year, and that dynamic has led to a surge in other P2E protocols such as Illuvium (ILV), Chain Guardians (CGG), and MyNeighborAlice (ALICE).
Top 5 game logs that change in 90 days based on price | Source: Messari
The P2E gaming sector of the crypto ecosystem has grown tremendously in the last few months as users begin to discover the benefits of a game that rewards participation, as opposed to the it’s free to play model, offers in-game Purchases on, however, leave the users with little benefit after months of gaming and investment.
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According to Cointelegraph