According to information provided (1) by DappRadar, the leading play-to-earn platform Axie Infinity [AXS], has seen a boost in user activity since the beginning of 2023. It coincides with the resurgence of interest in NFTs and the gaming vertical of the crypto currency ecosystem.
The user activity in the play-to-earn gaming environment dropped significantly in 2022 due to the general downturn in the crypto currency market. According to the findings of the CoinMarketCap & Naavik 2022 Blockchain Gaming Report, released (2) in November 2022, prominent play-to-earn games like STEPN and Axie Infinity dealt with significant setbacks in the year 2022.
The number of their daily active users, the volume of their non-fungible token sales, and the total number of completed transactions decreased after these shocks.
Revival of Interest in Axie Infinity
Notably, in the trading year 2023, there has been a revival of interest in NFT initiatives and blockchain games. Since then, the number of daily unique active users on Axie Infinity has increased by 59%, as indicated by data provided by DappRadar.
Similarly, the total volume of the game's sales climbed consistently alongside a rise in the number of functioning wallets. According to DappRadar, sales have increased by 214% in the past two weeks, reaching a total volume of $6.86 million and being reported on January 14 as the total sales volume.
Since the beginning of 2023, the number of daily transactions counted on the play-to-earn game has likewise climbed by 105%.
Axie Infinity has seen an increase in the number of sales and the number of transactions, all of which have had a favorable impact on daily revenue. According to data (3) obtained from Token Terminal, the daily revenue generated by the gaming industry increased by 77% in 2022. In fact, during the previous month, this rose by 36%.
AXS Token Sees Favorable up move
The price of Axie Infinity's governance token AXS, which was trading at $9.13 at the time of this article's publication, increased by 50% in the preceding two weeks. According to data provided by tradingview.com, the value of the alternative crypto currency increased by 19% during the previous twenty-four hours, while trading volume also increased by 122%.
According to (3) to Cryptowatch, the price of AXS has a statistically positive correlation with that of Bitcoin [BTC], the value of which has climbed by more than 26% since the beginning of the year.
At the time of publication, an analysis of the daily chart showing the price movements of AXS suggested that the governance token was overbought. Important indicators like the Relative Strength Index (RSI) and the Money Flow Index (MFI) both rested at overvalued highs.