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The cryptocurrency AXS of the giant Axie Infinity is mobilizing in spite of the imminent release of millions of dollars of chips.
AXS has gained over 40% in the past 24 hours, reaching a four-month high of $13.94, according to CoinDesk data.
The locked-in dollar value of the number of contracts opened in tax-related perpetual forward contracts increased from 156% to $104 million in the last 24 hours, per coin. An increase in open interest rates coupled with a rise in prices indicates an upswing in new capital.
Axie infinity is a blockchain-based trading and fighting game that gives players the opportunity to collect, breed, raise, Creatures based on combat and commercial tokens called "axies", which are scanned as non fungible tokens (nfts). Axie infinity shards or axs is an infinity set governance token.
The latest positive market action may seem confounding, as some 4.8 million AXS tokens ($64 million at the current price of $13.31) – the equivalent of 1.8% of the cryptocurrency's total supply of 270 million – will be freed up later Monday, according to data source TokenUnlocks.
Unlocking is seen as bearish catalysts that unleash cash and open doors for investors to lock in profits. Tokens are locked to prevent large bag holders – typically the first investors or even members of the project team – from selling their coins all of a sudden and driving down prices.
By flexihartmann, managing shareholder of the crypto investment company hartmann capital, The disconcerting rally is the result of the hope that the axie team will announce a positive catalyst to counteract the downside impact of unlocking the token.
"Over the past 12 months, cryptography teams have begun to build a history of backing up important ads for unlocking days. This has happened on such a regular basis that people are now expecting a bullish catalyst around unlocking,' Hartmann told Coindesk.
Substack publication Unlocks Calendar recently made a similar observation.
"As we experience positive market momentum, teams with upcoming unlocks will release good news that they withheld for months when the market was dead," Unlocks Calendar tweeted on Jan. 14. "The objective would be to take advantage of positive market measures to inflate the price just prior to unblocking."
AXS is one of many emerging cryptocurrencies before the token is unlocked. The decentralized cryptocurrency focused on the perpetual dydx exchange surged by 64% this month, outperforming the leaders of the Bitcoin and Ether market, despite an imminent release on February. 2. apt, the cryptocurrency native to layer 1 blockchain aptos, also rallied 40% in the week before its token unlock which took place on January. 12. The price of cryptocurrency has now doubled to $13.
"the market has become so reflective that people are buying into the anticipation of unblocking news," Hartmann said, call the new tendency to publish good news with unethical unblock token.
'I see this emerging trend as fairly unethical as you create a buzz to help your investors off-load on individuals [investors] who aren't aware of things like unlocking," Hartmann said coindesk.
Some observers maintain for a long time that the impact of unblocking accentuates the dominant market trend. 'Big token unlocks are a complicated event that interacts with the psychology of the market. In other words, the big breakthroughs may be bull catalysts and bear catalysts. They unlock liquidity to continue the prevailing trend," Chris Burniske, co-founder of New York-based crypto-focused venture firm Placeholder tweeted in April 2021, explaining the bullish reactions to token unlocks that took place in early 2021.
At the time, a bull frenzy had seized the market with Bitcoin striking new records reached nearly every other week. The market saw an upturn this month, with leading bitcoin and ether cryptocurrencies racking up 35% each.
AXS gained more than 100 percent this month. (TradingView/CoinDesk)
AXS has gained over 100% this month, topping the 200-day simple moving average for the first time since 2020. The revival of the bull has not yet revived the interest for the game platform.
Data from the gaming statistics website ActivePlayer show Axie has had 432,001 live players count in the past 30 days, the lowest since Oct. 2020. The gaming platform has always had over 2 million players from September 2021 to May 2022.
The number of active players has fallen to an all-time low since October 2020. (ActivePlayer) (ActivePlayer)
