Axie Infinity enters bear market conditions? AXS at risk of dropping to $50?

The price of Axie Infinity has continued on its negative path, following in the footsteps of its peer’s decline.

Furthermore, profit-taking and broader cryptocurrency market weakness continue to weigh on the gaming token and metaverse crypto asset classes, as well as the overall crypto market.

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The price of Axie Infinity may stabilize for a few days before deciding on its principal trading trend over the next several weeks. The second-largest high-volume node in the volume profile, which trades near $70, has formed a support zone for AXS, although it is unclear if this will be sufficient to stem additional selling pressure.

There may be a temporary limit to how far the Axie Infinity price may go due to the gaps between the body of daily candlesticks and the Tenkan-Sen, but it could only be a temporary stop before the next leg of the decline begins. The Axie Infinity price is expected to establish its next key support zone between $65 and $50, according to the volume profile, which thins out significantly between $65 and $50. For a variety of reasons, the $50 value area is essential. First and foremost, it is a psychologically meaningful number. A strong volume node exists between the price ranges of $45 and $50, and the nearest Fibonacci retracement (38.2 percent) is at $46.

After all is said and done, if the Axie Infinity price falls below $65, the $50 value area should prevent the price from continuing to fall. The Axie Infinity price must rise above the daily Kijun-Sen level of $95 in order for bulls to disprove any present negative bias in the market. Important adjustments have been made to the rewards system by the creators of the play-to-earn protocol, Axie Infinity, in an effort to make the product more sustainable for its customers.

The popular battle game enables players to acquire, breed, battle, and trade creatures known as “axies,” which they can then sell or trade. To begin playing, new gamers will require at least three axes, each of which will cost more than $1,000 to purchase. Smooth love potion (SLP) tokens are awarded to players as a reward, and these tokens may be exchanged for in-game items such as breeding new axies and other features. Over the last two years, the substantial revenues from SLP have helped to develop a so-called “economy,” which has in some cases replaced traditional sources of income for several communities in the Philippines.

Axie Infinity’s SLP token, in contrast to AXS, which is a governance token that allows holders to participate in choices about the company’s future, has an unlimited token supply, which means that there is no limit to the number of SLP tokens that might exist in the future. This led to an unsustainable environment for new players, which even resulted in a decrease in the number of active users. In a recent blog post, the Axie creators said that unless we take immediate and decisive action now, we face utter and lasting economic collapse. It has been determined that the emission rates linked to numerous gaming elements, such as “adventure mode” and “daily quest,” have been decreased to zero, down from more than 130 million SLP before.

As a result, the daily supply of SLP tokens is reduced by 56%.Over the past year, the number of blockchain-based games has increased by orders of magnitude. And, for the most part, it has been led by a single major brand, Axie Infinity, which is a digital environment in which users can battle, breed, and improve their Pokemon-like pets.However, according to new research by game consulting firm Naavik, Axie Infinity may not be as profitable as originally believed. It is possible that the majority of its players are earning less than the minimum wage. Furthermore, with the halting of new user growth, it is probable that Axie Infinity may be forced into a period of recession. According to Aleksander Larsen, the COO and co-founder of Sky Mavis, the gaming company that produced the Axie Infinity game, the majority of the game’s players come from low-wage regions.

“It’s a global phenomenon,” Larsen says. It is estimated that more than half come from only one nation, the Philippines, where, according to the country’s Department of Labor and Employment, the minimum daily salary is approximately $7 and the average daily wage is over $40. In terms of rupees, that equates to around 520 and 3,000 rupees, respectively. In sharp contrast, the entry fee for the game is around $350, or almost $26,000. For those of you who are unfamiliar with Axie Infinity, it is necessary to purchase three dogs in order to be qualified to take part in the contest. These “pets” are purchased with the use of a cryptocurrency known as RONIN. In addition, each pet costs around $100.

Non-profits have a considerable barrier to entrance, and the return on investment (ROI) isn’t very impressive unless you’re a fairly dominant player, and even then, earnings are below the national average pay. One of the most common methods for Axie Infinity players to gain money is by leasing out their pets to other players in the community. As’scholars,’ they often charge a 60 percent to 70 percent cut from their revenue in exchange for their services. This, however, implies that the underlying purpose is monetary in nature as well. In Naavik’s opinion, because the majority of academics pay out their profits as a daily income, the tokens aren’t being put to good use within the game.

That is, the vast majority of researchers aren’t utilizing their financial rewards to breed more dogs. Similar to how inflation may sneak into a regular economy when cash is hoarded and there is insufficient economic activity, Axie Infinity is confronted with a similar problem. Furthermore, if the population of axes grows over time as a result of more players entering the game, the requirement to breed more axes decreases,

further contributing to inflationary problems. Because existing players are either cashing out or no longer have a desire to breed new pets, Axie Infinity’s revenue is derived solely from the addition of new users. And, as things stand, the rate of daily growth in the number of users is slowing. Sky Mavis, on the other hand, is acutely aware of the situation. They are now in the process of expanding their universe, which will provide more opportunities to earn and spend tokens and, as a result, produce more money from a wider range of sources.

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