Axie Infinity’s AXS token continued its impressive price action, rising 42% over the last 24 hours to $13.06, according to CryptoSlate data.
The positive price performance is coming ahead of an imminent token unlock that would release 4.89 million new tokens — 1.8% of the asset’s 270 million total supply — worth roughly $63.8 million, according to Token Unlocks.
Selling pressure ahead?
AXS is one of the best-performing digital assets in the current market rally. Since the beginning of 2023, the play-to-earn (P2E) token has risen by roughly 80% — outperforming flagship digital assets like Bitcoin (BTC) and Ethereum (ETH).
Several market analysts advised their community to trade cautiously, while some argued that the unlock provides a short opportunity.
The managing partner at Hartmann Capital, Felix Hartmann, said:
“Historically teams have saved up announcements for unlocks. I think market has become so reflexive that people buy in anticipation of unlock news. Funding rate is at around +0.03% meaning starting to see an imbalance with more longs than shorts.”
Axie Infinity player count drops to new low
Axie Infinity’s average player numbers have dropped to a November 2020 low, according to Active Player data.
The P2E game had around 100,000 live players and 432,000 over the past month. This is a steep decline from the over 2 million players it recorded between September 2021 and May 2022.
At the time, Axie’s popularity soared as players could earn a living through the game. However, players started deserting it when their earning potential became limited — this state was further exacerbated when it suffered a hack in March 2022.