Axie Infinity is set to hit 10 million users before the end of the year, but there is a sustainability fear as only 14% hold the AXS coin.
Axie Infinity is one of the leading blockchain games in the world. The rise in NFTs and blockchain gaming has made it one of the top projects in the cryptocurrency space, and it still has room for growth.
Axie Infinity Users to Reach 10 Million Soon
The blockchain gaming space is growing, and Axie Infinity remains the biggest player in the space. However, a recent report by Covalent has cast doubt about the long-term sustainability of the project.
According to the report, Axie Infinity currently has 8.3 million players and is expected to cross the 10 million mark before the end of the year. The game has more than a million active daily users, making it perhaps the most widely used blockchain game.
Despite that, only 14% of the total players are buying Axies (AXS), the native token of the Axie Infinity platform. More than 9% of the players have sold their AXS, and less than 5% of the players have ever bred Axies. In addition to these, less than 5% of those that do breed continue breeding in consecutive months.
As a result, the researchers said they are concerned about the sustainability of the platform if the players don’t buy or breed Axies. The report said, “Not only is the total number of breeders shrinking month over month, but the number of existing breeders is also shrinking – this means it is not currently profitable for anyone regardless of their experience level. With decreasing growth rates and a decline in existing breeders, the retention rates shown in the next section are bound to be low.
AXS Continues to Underperform
AXS has underperformed in recent weeks and is down by more than 30% from its all-time high. At press time, AXS is trading at $112 per coin, down by more than 19% over the past 24 hours.
AXS’s MACD line is below the neutral zone. Source: FXEMPIRE
The MACD line is below the neutral zone, indicating bearish momentum. The RSI of 35 shows that AXS is currently oversold, and the coin is trading below its 50-day moving average of $135.
However, AXS remains one of the best-performing cryptocurrencies so far this year, having recorded massive profits over the past 12 months.