Axie Infinity (AXS): Price Growth Decoy of its Fading Relevance

Axie Infinity (AXS) still holds the record as the most popular game in the Web 3.0 play-2-earn (P2E) arena, considering it is among the major pioneers in the space; however, the narrative seems to be changing despite its current bullish momentum.

Since the hack of the Ronin Bridge by the Lazarus Bridge, the once-booming crypto gaming ecosystem has more or less become a shadow of itself. According to data from Activeplayer.io, Axie Infinity currently has a monthly active user base of 432,000, down from the 2.16 million it recorded back in May.

Following the hack at the time, which saw more than $600 million moved from the bridge, Axie Infinity has bolstered the security of the Ronin Bridge and has reopened access for users. Whether or not it is the impact of bankruptcy and the general slump in the price of assets, Axie Infinity is showing signs it is losing relevance among players in more ways than one.

While Axie Infinity currently has a gloomy outlook per its active users, its price action is signaling a different trend. AXS is trading at a price of $6.75, up 0.89% over the past 24 hours. Amid the general bullish momentum the industry has been recording since the start of the year, Axie Infinity has etched upward by 8.45% over the past week.

Uneven token distribution

AXS, being the native token of the Axie Infinity protocol, has an uneven holder base that has a high chance of steering its price action against market momentum.

According to data from CoinMarketCap, one address, "0x73b1..." holds as much as 46.29% of the coin's total supply, with the top 10 addresses holding 96.37% of all AXS in circulation. This figure shows that many investors have notably dumped the coin over the past year, and the sharp price gains the token always records is born out of moves by a significant few.