Axie Infinity metrics predict this path for the future, but will AXS follow

Axie Infinity metrics predict this path for the future, but will AXS follow

  • AXS network growth has slowed amid bearish market conditions
  • Organic demand for Axie Infinity has seen a decline over the past 12 months

Just a year ago, Axie Infinity had made a name for itself as one of the most popular crypto projects. Its greatest advantage was its successful implementation of symbolic mechanics, which propelled it to great heights. This first-mover advantage has allowed its native token, AXS, to become one of the best tokens in the crypto space.

Read Axie Infinity [AXS] price prediction 2023-24

Axie Infinity: back to square one?

AXS, as of Nov. 21, was trading at a huge pullback from its all-time high, thanks to bearish market conditions this year. Axie Infinity’s performance also took a hit over the past 12 months as the entire crypto segment cooled off. This was reflected in its network growth metric, which followed a broadly bearish trajectory between November 2021 and September 2022.

Growth of the Axie Infinity Network

Source: Santiment

Interestingly, despite the decline seen, Axie Infinity’s network growth metric recorded its second biggest spike in 2022 earlier this month. The price also registered a strong rise, indicating that there was a significant purchase. This observation may confirm that there was still significant interest in Axie Infinity and AXS.

The growth of the network may offer hopeful signs for a strong rebound in the next upswing. However, this does not paint a clear picture in terms of the usefulness of the network. Measurements of the number of payments and daily active addresses can offer better insights in this regard.

Both of these metrics revealed that Axie Infinity’s organic usefulness had actually dropped over the past 12 months.

Axie Infinity Network Utility

Source: Santiment

It could be difficult for Axie Infinity to experience a further surge in demand without significant network growth and utility.

What will it take for another AXS push?

Axie Infinity tokenomics was the main reason AXS was so popular in 2021. The only way the project can replicate such demand organically is to roll out engaging games that have robust utility for AXS.

Additionally, Axie Infinity has used its previous success to cultivate a strong community, as evidenced by an increased focus on esports and metaverse gaming.

This could be seen as a significant trajectory for Axie Infinity, as esports was already a segment worth billions. Focusing on this segment will not only allow the project to develop a strong and active community, but also boost the popularity of its games.

While its future success is not set in stone, Axie Infinity’s efforts may encourage investors to continue holding AXS. Investors should also consider factors such as more competition and less hype about the Axie Infinity ecosystem before making a decision.

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