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AXS Dips Following Axie Infinity’s Staking Rewards Reduction

By:
Hassan Maishera
Updated: Jan 6, 2022, 11:02 UTC

AXS has lost more than 17% of its value in the past 24 hours after the team announced the reduction in monthly staking rewards.

Axie Infinity FXEMPIRE

Axie Infinity Shard (AXS) has lost more than 37% of its value over the past three months and could be set for further losses soon.

Axie Infinity Reduces Monthly Staking Rewards to 1,566,000 AXS Tokens

The Axie Infinity team announced the reduction of their monthly staking rewards from 2,000,000 AXS tokens to 1,560,000. The team announced this in a Twitter post a few hours ago, stating that it is according to the schedule in its whitepaper.

Axie Infinity is an Ethereum-based collectible game. In the game, the characters are called Axies, and they are nonfungible tokens (NFTs) owned and controlled by the players. The players can store the Axies in their cryptocurrency wallets, transfer them to other Ethereum addresses or trade them with other players via a blockchain-based marketplace.

The reduction in AXS staking reward has resulted in the token losing 17% of its value over the past 24 hours. At press time, AXS is trading at $78.22.

AXS has been underperforming in recent months. There are concerns over the project’s long-term sustainability. The project is expected to reach 10 million users soon and has more than a million daily active players.

However, only 14% of the total players are buying Axies (AXS). Furthermore, more than 9% of the players have sold their AXS, and less than 5% have ever bred Axies. In addition to these, less than 5% of the players have been breeding Axies for consecutive months.

The poor performance in recent months comes despite the team reportedly selling a virtual land on its platform for $2.3 million.

AXS Could Dip Lower

The AXS technical indicators show that the token is underperforming. If the current market momentum is maintained, AXS could be struggling to defend the major support level at $70 over the coming hours.

AXIE’s RSI shows the coin is oversold. Source: FXEMPIRE

AXS is currently trading below its 100-day moving average price of $119. Since November, the MACD line has been in the negative region, and it might likely stay there longer. The 14-day of 26 shows that AXS is facing selling pressure in the market.

AXS’s poor performance coincides with a broader sell-off in the cryptocurrency market. Bitcoin is currently down by 7% and is trading below $43,000 per coin. Ether has slipped below the $3,400 mark after losing 11% of its value in the last 24 hours.

About the Author

Hassan is a Nigerian-based financial Journalist and cryptocurrency investor.

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