- AXS network growth has been slowing due to bear market conditions
- Axie Infinity’s organic demand has declined over the past 12 months
Just a year ago, Axie Infinity made its name as one of the most popular crypto projects around. Its biggest merit was the successful implementation of symbolic mechanics, which pushed it to great heights. This first engine feature has made its parent token, AXS, one of the best in the crypto space.
Read Axie Infinity’s [AXS] Price forecast 2023-24
Axie Infinity: Back to square one?
AXS, on November 21, was trading down significantly from its all-time high, thanks to this year’s bear market conditions. Axie Infinity’s performance has also been very successful in the past 12 months, as the entire crypto sector has cooled down. This was reflected in its network growth metrics, which were on an overall downward trajectory between November 2021 and September 2022.
Interestingly, despite the notable decline, the Axie Infinity network growth metric recorded its second largest peak in 2022 earlier this month. The price also recorded a sharp rise, indicating that it was a big buy. This observation can confirm that there is still a lot of interest in Axie Infinity and AXS.
The network’s growth may give hope for a strong recovery during the next boom. However, it does not give a clear picture when it comes to network tools. The number of active payments and addresses per day can provide better insights in this regard.
These two metrics revealed that Axie Infinity’s organic tools have actually held up over the past 12 months.
It may be difficult for Axie Infinity to experience another surge in demand without significant network growth and benefit.
What would it take for another increase in AXS?
Axie Infinity tokens have been the main reason why AXS is so popular in 2021. The only way the project can replicate such demand organically is by coming up with attractive games with a strong interest for AXS.
Furthermore, Axie Infinity has used its past success to grow a strong community, as evidenced by the increased focus on esports and metaverse gaming.
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This could be seen as an important path for Axie Infinity, as esports was already a multi-billion dollar segment. Focusing on this part will not only allow the project to grow into a strong and active community, but also increase the popularity of its games.
While its future success isn’t written in stone, Axie Infinity’s efforts may encourage investors to continue owning AXS. Investors should also consider factors such as increased competition and less noise across the Axie Infinity ecosystem before making a decision.