Axie Infinity (AXS) rallies 80% after migration to Ronin Sidechain


Non-fungible tokens were one of the hottest sectors in the cryptocurrency market from the start of the year through March, but as is the nature of the crypto industry, NFTs have grown considerably. cooled in April as the hype calmed down and high fees on the Ethereum (ETH) network hampered the ability of buyers and sellers to interact with protocols.

The challenge of high fees ultimately led some projects like Axie Infinity (AXS) and Smooth Love Potion (SLP) to migrate to other networks or adopt Layer 2 solutions to reduce costs. This move, coupled with a drastic reduction in ETH gas fees over the past two weeks, may partly explain the strong rally in AXS and SLP over the past week.

4 hour AXS / USDT chart. Source: TradingView

Data from and from TradingView shows that the price of AXS rose 83% from a low of $ 6 on April 25 to a high of $ 11 on April 29, while the price of SLP skyrocketed by over 1,000%, from a low of $ 0.035 on April 25 to a new high of $ 0.396 on May 2.

READ  Satoshi Nakamoto saves the world in NFT-compatible comic series - TUSEN magazine
4 hour SLP / USDT chart. Source: CoinGecko

Several reasons for the recent price growth of AXS and SLP include the migration to the Ronin sidechain for Ethereum, the increase in community adoption, and the sponsorship of a well-known crypto influencer who helped attract new participants in the community.

Switching to Ronin Sidechain Reduces Costs

The biggest milestone for AXS and SLP over the past two weeks has been the full launch of Ronin Phase 2 which required users of the platform to migrate their Axies, which are the characters in the game, as well as their AXS, SLP and ETH tokens to the Ronin sidechain in order to continue to engage with the protocol.

Ronin is an Ethereum sidechain initially announced in June 2020 and designed specifically for the Axie Infinity community to support scaling and a smoother gaming experience for a large number of users.

READ  1-inch price hits new high as top DEX aggregator fights for DeFi dominance

The full migration to Ronin was completed on April 28 and was followed by the 1000% price hike for SLP.

Crypto influencer shines the spotlight on Axie

A second bump for the Axie community came with the May 3 announcement that pseudonymous digital landowner and crypto-whale Flying Falcon had donated funds to the Sponsor-A-Scholar program set up by Yield Guild Games, an open gaming community.

This move helped bring attention to the fact that Axie Infinity is more than just a collector’s game, but rather a growing community capable of supporting its members and generating a consistent return on invested assets.

The momentum of the AXS token and the Axie Infinity ecosystem has been building for months in anticipation of the migration to the Ronin sidechain.

READ  Gemini Exchange's crypto custody has doubled since January, reaching $ 25 billion

According to data from TUSEN Markets Pro, market conditions for AXS have been favorable for some time.

The VORTECS ™ Score, exclusive to TUSEN, is an algorithmic comparison of historical and current market conditions derived from a combination of data points including market sentiment, trade volume, recent price movements and Twitter activity .

VORTECS ™ score (green) against the AXS price. Source: TUSEN Markets Pro

As shown in the graph above, the VORTECS ™ score for AXS was high in the green zone for a majority of April, with the system registering a score of 78 on April 25, about 2 hours before the price dropped. ‘increases by 82% compared to the next two days.

Now that the Axie Infinity ecosystem has moved to a cheaper paid environment and the number of daily active users continues to grow, AXS and SLP are two NFT tokens that could continue to grow, especially as blockchain gaming becomes a form of mainstream entertainment.

The opinions and opinions expressed here are solely those of the author and do not necessarily reflect the views of Every investment and trading move comes with risk, you should do your own research when making a decision.