Investors Cheer Axie Infinity (AXS) Plans to Improve Economic Stability
Axie Infinity (AXS) is one of the biggest gainers on the board, continuing to surge ahead ever since its developers announced an updated reward structure for its PvP to ensure the economic stability of the most popular blockchain game. At the time of writing, AXS/USD is trading at around $70.31, up by almost 15% over the past 24 hours.
The leading P2E game has increased the number of leaderboard slots to 300k while the amount of AXS rewards has been raised from 3,000 to over 117k for the next season. The Smooth Love Potion (SLP) is the token used within the Axie Infinity ecosystem to distribute rewards to players while the AXS serves as the governance token for the game.
The developers have decided the reduce the supply of SLP tokens to offset the high rate of inflation among these tokens, which has seen higher levels of supply per day than their demand via breeding. Around 40% of SLP is created from the game’s adventure more while around 44% of the token gets created from PvP and the remainder comes as players mint them by claiming the daily quest.
In the upcoming 20th season of the game, players will no longer be able to earn the 50 SLP per day from the adventure mode, which could cut down supply of the reward token by around 130 million on a daily basis. The team has also removed the daily quest, helping cut down minting of around 45 million SLP per day.
This proposal can make SLP more scarce, thereby increasing the value of Axies, which the team behind the game hopes will encourage more interest in Axie Infinity among both players and investors. Following the announcement on February 3, the AXS token enjoyed a 40% rally even though the mood in the overall crypto market remained somewhat subdued. It looks like the bull run continues into this week, enjoying an additional boost from an improvement in the overall market sentiment.
AXS/USD Technical Analysis
On the H4 chart of AXS/USD, moving averages as well as popular technical indicators MACD and momentum are exhibiting a bullish bias. However, the Stochastic RSI is flashing sell signals too.
Axie Infinity’s price has crossed the pivot point at $61.07 but is holding under the immediate resistance at $76.08. Let’s see if buyers can take out this level next.
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