Axie Infinity (AXS), a Pokémon-inspired blockchain-based play-to-earn (P2E) metaverse game, has been suffering over the last few weeks despite being one of the metaverse ventures with the best returns for early investors.
Since October 10, the market capitalization of Axie Infinity has fallen below $1 billion, while the price of AXS has declined by more than 20% in the last week, according to CoinMarketCap data collected on October 24.
The market capitalization of AXS plummeted from $1.04 billion on October 10 to $833.35 million at press time, a decrease of 20.19% in two weeks.
The creators’ statement that they will release additional Axie Infinity Shards (also known as AXS) on October 24 might have contributed to the recent death of the popular non-fungible token (NFT) game.
According to the data aggregation portal TokenUnlocks, the 21.5 million AXS that are scheduled to be issued for the platform’s staking, team, advisers, etc. represent 8% of the overall supply of the asset.
Taking into account the current price of AXS, which was $8.61 at the time of publication, this indicates that about $185 million worth of Axie Infinity’s tokens will reach the market as scheduled, perhaps driving the asset below its support zone as it increases selling pressure.
Aleksander Leonard Larsen, co-founder and chief operating officer (COO) of both Axie Infinity and Sky Mavis, reassured players as they prepared for the release of such a large number of tokens that “tokens unlocked are not the same as tokens in circulation” and that this is “business as usual” for Axie.
Meanwhile, the total number of unique addresses holding AXS on the network continues to increase, reaching 60,710 on October 24. This represents an increase of 7.48% compared to 56,170 on July 28. However, the addresses with the highest AXS holdings have been decreasing, suggesting that whales may be selling their assets.
AXS is presently trading at $8.61, a decrease of 2.85% on the day and a decrease of 22.03% compared to seven days ago.
The market capitalization of Axie Infinity’s decentralized finance (DeFi) asset is now $833.35 million, ranking AXS in the 58th position based on this metric.
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