Airdrops have become the equivalent of stimulus checks in the cryptocurrency ecosystem in recent years, and further evidence of this can be provided by popular protocols like Uniswap and dYdX, which provided their early adopters with token drops valued at US $ 30,000 to US $ 2 million Dollars rewarded.
The latest protocol to surprise its user base with a wallet mast airdrop was Axie Infinity (AXS), a blockchain-based fighting game that gained traction over the course of 2021 as users increased its play-to-earn (P2E) -Adopt game model.
Data from Cointelegraph Markets Pro and TradingView show that AXS ‘price has risen 145% from its low of $ 47.92 on September 21, to a new record high of $ 118.00 during May 24th – Hourly trading volume increased from $ 421 million to $ 1.95 billion.
Three reasons for the recent spike in AXS price over the past two weeks are the introduction of staking features for the AXS token, the release of a community airdrop early adopter, and the increasing popularity of play-to-earn gaming Protocols.
AXS starts staking
The growth in decentralized funding in 2021 has put the spotlight on the ability of crypto holders to get their tokens up and running and generate a return by providing liquidity or staking.
In an effort to capture some of this momentum and improve the overall tokenomics of the AXS token, the Axie Infinity team announced the introduction of staking capabilities on September 30th. This excited the members of the community and to date the owners have staked out almost 9.8 million AXS in just two days.
And it’s not just the average crypto user who takes part in the staking, as recent tweets show that other gaming platforms in the crypto ecosystem, including Yield Guild Games, have announced that they are now staking their AXS holdings to add value to their respective ecosystems.
– Yield Guild Games (@YieldGuild) October 1, 2021
Axie Infinity is currently offering an APR of 240% for stakers, with the rewards coming from a dedicated pool of 78.3 million AXS tokens provided by the team.
AXS is giving tokens to early adopters
A second reason for the price and activity spike at AXS was this week’s community airdrop, which rewarded users who read the log before October 26, 2020.
Being part of the Axie community is an incredibly rewarding experience. Socially, intellectually and financially.
Thanks very much @AxieInfinity! https://t.co/2NEsU3MlfL
– Arctic (@ Axie44) September 30, 2021
According to the team, 10,000 wallets were selected based on a snapshot taken on October 26th to receive a share of the 800,000 AXS airdrops, depending on the wallet’s activity.
The more active users like the pseudonymous Twitter user “Arctic” received larger assignments now valued at nearly $ 500,000, while less active accounts received smaller assignments that are still significant in terms of dollar value, especially in the economically disadvantaged Part of the world where many Axie Infinity players live.
– squarrre (@Sorareuk) September 30, 2021
Related: NFT trading game Axie Infinity launches AXS staking program
The increasing popularity of games to earn
Another reason for Axie Infinity’s recent growth is the strength of the P2E gaming model, which many analysts say will be the breakout sector in 2021.
Axie Infinity was actually the game that kicked off the P2E rally earlier this year, and that dynamic led to a surge in other P2E protocols like Illuvium (ILV), Chain Guardians (CGG), and MyNeighborAlice (ALICE).
The P2E gaming sector of the crypto ecosystem has gained momentum in recent months as users begin to discover the benefits of a game that rewards participation, as opposed to the dominant free-to-play model that is In – Offers game purchases, but leaves the user with little to show after months of gameplay and investment.
According to data from Cointelegraph Markets Pro, market conditions have been favorable for AXS for some time.
As can be seen in the graph above, the VORTECS ™ Score for AXS climbed into the dark green zone on September 26, hitting a high of 87 around 35 hours before its price rise of 55% in the next three days.
Cointelegraph Markets Pro’s NewsQuake ™ service saw two major pieces of news ahead of the price spike, including a Bitstamp exchange listing announcement and the team’s announcement that AXS staking had started.
The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every step of investing and trading involves risk, so you should do your own research when making a decision.