Take the massive air and AXS catapult Axie Infinity to an all-new high

Airdrops have become the cryptocurrency ecosystem’s equivalent of stimulus checks over the past couple of years and more evidence of this can be demonstrated by popular protocols like Uniswap and dYdX that rewarded their early adopters with token drops now worth $30,000 to $2 million.

The latest protocol to surprise its user base by airdropping wallet fattening was Axie Infinity (AXS), a blockchain-based fighting game that has come into prominence over the course of 2021 as users embraced the Play-to-win (P2E) gaming model.

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Data from Cointelegraph Markets Pro and TradingView shows that since its low of $47.92 on September 21, AXS has surged 145% to hit a new record high at $118.00 as 24-hour trading volume rose from $421 million to $1.95 billion.

4-hour chart AXS/USDT. Source: TradingView

Three reasons for the recent surge in AXS prices over the past two weeks include the introduction of AXS token staking features, the release of a group of early-to-air users, and the increase in the popularity of play-for-profit protocols.

AXS launches staking

The growth of decentralized finance in 2021 highlighted the ability of crypto holders to operate their coins and earn a return by providing liquidity or staking.

In an effort to capture some of this momentum, as well as improve the public token of AXS token, the team at Axie Infinity announced the launch of staking capabilities on September 30th. This has excited community members excited, and so far, owners have already mortgaged nearly 9.8 million AXS in just two days.

AXS staking dashboard. Source: Axie Infinity

And it’s not just that the average crypto user engages in the staking action, as recent tweets show other gaming platforms in the crypto ecosystem, including Yield Guild Games, which has announced that it is now pawning its AXS holdings as a way to help increase value from private ecosystems. them.

Axie Infinity is currently offering an annual interest rate of 240% to bidders with rewards coming from a dedicated pool of 78.3 million AXS tokens set aside by the team.

AXS drops tokens for early adopters

The second reason for the high price and activity in AXS was this week’s community airdrop which rewarded users who participated in the protocol before October 26, 2020.

According to the team, 10,000 wallets were selected based on a snapshot taken on October 26 to receive a share of 800,000 AXS, depending on the level of wallet activity.

More active users like Twitter user with the pseudonym “Arctic” received larger allocations now amounting to nearly $500,000, while less active accounts received smaller allocations which nonetheless still significant in dollar terms, especially in the most economically disadvantaged parts of the world. It is where many Axie Infinity players reside.

Related: Trading Game NFT Axie Infinity Launches AXS Staking Program

The growing popularity of play-for-profit games

Another reason for the recent growth seen in Axie Infinity is the strength of the P2E gaming model which many analysts say will be the breakout segment in 2021.

Axie Infinity was actually the game that kicked off the P2E career earlier in the year and that momentum has translated into a slight increase in other P2E protocols such as Illuvium (ILV), Chain Guardians (CGG), and MyNeighborAlice (ALICE).

Top 5 gaming protocols with 90-day change in US dollar rate. Source: messari

The P2E gaming segment in the crypto ecosystem has gained momentum in recent months as users begin to discover the benefits of playing a game that rewards participation, as opposed to the mainstream free-to-play model that offers in-game purchases but leaves users with little to offer after months of playing and investing.

According to Cointelegraph Markets Pro data, market conditions for AXS have been favourable for some time.

VORTECS™ Score (in green) vs. AXS price. Source: Cointelegraph Markets Pro

As shown in the chart above, the VORTECS™ result for AXS climbed into the dark green on September 26 and reached a high of 87 around 35 hours before its price started to rise by 55% over the next three days.

Cointelegraph Markets Pro’s NewsQuake™ posted two important news announcements ahead of the price hike, including the announcement of a listing from the Bitstamp exchange and the team’s announcement of the launch of AXS Staking.

The opinions and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.