Axie Infinity [AXS], one of the leading cryptocurrency game companies, seldom had a good result during the 2022 market cleansing. But AXS seems to have reversed the trajectory it had been following for the most of 2022 as of the beginning of 2023.
Sentiment released a report on the Axie ecosystem’s performance over the previous three weeks on January 20. The disclosure states that there have been some low points.
Notably, according to Dapp Radar, the number of Unique Active Wallets (UAW) used on the AXS network increased by 59%. The statistic provided context by describing the level of user engagement with decentralized applications on a smart contract platform.
The play-to-earn gaming environment saw an increase in gaming activity and in-game AXS NFTs, albeit not necessarily daily active players.
This existed up to January 14. However, data from the worldwide dApp tracker revealed that active wallet engagement has decreased. The UAW had down 5.79% in the previous day as at the time of publication. The volume of the transactions decreased to $743,290 as a result of this drop.
The volume decrease further extended to AXS’s awareness. The overall attitude toward Axie, according to Santiment, was -0.255. This suggested that while social volume could be high, perception as a whole was probably quite low.
Despite the decline, on-chain information revealed that AXS’s circulation over the previous week increased to 2.31 million. This rise suggested that the amount of AXS that was transferred between wallets during the aforementioned time had improved. However, a further increase might increase the pressure to sell the token in the near future.
Following the outstanding performance, there was a spike in demand for native tokens on the Axie Infinity chain. According to Santiment’s research, AXS and Smooth Love Potion [SLP] both experienced a UAW rise.
The SLP surge, however, last reached its apex on January 14. AXS had lost 12% of its value since reaching the peak up to the time of writing, while SLP had lost 11%. This caused Axie Infinity’s network growth to decline to a level that was unusually low.
In conclusion, AXS’s state at press time might not appear to be very good. However, it was undoubtedly an improvement over 2022. The Axie on-chain status could require considerable recovery in various areas in order to build on the progress.