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Axie Infinity Token Price Spikes by 48% in Last Two Days, Here Are Potential Reasons

Fri, 03/25/2022 - 10:16
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Arman Shirinyan
GameFi industry tokens are growing once again
Axie Infinity Token Price Spikes by 48% in Last Two Days, Here Are Potential Reasons
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The GameFi and Metaverse industries were slowly losing traction as time has gone by, but as the market faced a sudden recovery, Axie Infinity (AXS) faced a sudden spike in price after presenting a few new features in addition to the recovering market.

Axie presents community treasury and "progressive decentralization"

One of the fundamental reasons behind the intensified growth could be tied to the presentation of the way of governing the Axie Community Treasury. Previously, the project reported that it grew to $1 billion in value thanks to the growth of both the project and the GameFi industry in general.

In the future, token holders will govern the usage of resources and change the long-term supply of AXS, replenish resources, invest in various activities and create resource groups for realizing important projects.

The concept of progressive decentralization is the next waypoint for the project, according to the most recent article on substack. The idea of progressive decentralization is based on offering greater ownership to community members by rewarding any type of participation and contribution to the Axie ecosystem.

Interest in decentralized project returns

Despite fundamental changes and updates, increased interest in Axie can be explained with a general increase of inflows into the DeFi industry and projects related to it. GameFi lost a large portion of its popularity and TVL since the beginning of 2022.

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The majority of projects that utilize smart-contract technologies like Solana, Cardano and Ethereum are facing massive funds inflows and gaining at least 10% to their value in the last few days. At press time, AXS gained 44% to its value in the last three days and reached the resistance line of the 200-day moving average.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.