The blockchain-based play-to-earn project Axie Infinity recently caught the attention of crypto enthusiasts as its native cryptocurrency, AXS, surged over 12% in response to the game’s debut on the Apple app store. This development marked AXS as the top gainer on CoinDesk Indices’ leaderboard for that day. However, as we look at this news through a lens of skepticism, one might wonder if this price rally will sustain itself in the long run.
Initially, only Apple store users in select Latin American and Asian countries will have access to the card-based strategy game. Axie Infinity already boasts 1.5 million installations across all platforms. Sky Mavis, the play-to-earn project’s creator, aims to further expand the game’s reach by targeting Google and Apple mobile users.
In tandem with the price rally, the notional futures open interest, or the dollar value locked in open futures contracts, saw a sharp rise. This increase, reaching its highest point since February, signifies the influx of new money into the market. Yet, there is still a tinge of doubt when observing this development—the leverage appears to be skewed on the bearish side, as funding rates in the perpetual futures market remained negative.
This negative rate indicates a current dominance of bearish short positions in the market, which suggests that investors may have shorted perpetual futures contracts to shield their long positions in the spot market from a sudden price drop, reflecting a lack of confidence in the price rally’s sustainability.
As we now stand on the cusp of this potential boost in popularity and financial growth for Axie Infinity, it is crucial for crypto aficionados to consider both the optimistic and cautious sides of this situation. While the recent AXS price rally and increased accessibility of the game are undoubtedly positive, the bearish indicators in the perpetual futures market suggest that some may harbor doubts about the long-term potential of this play-to-earn project.
In conclusion, the debut of Axie Infinity on the Apple app store seems to have generated significant excitement and financial gain for the project. However, as with any investment or market movement, it remains essential for crypto enthusiasts to consider the duality of potential outcomes—whether this growth ultimately proves to be a steady climb or a momentary uptick. To make the most informed decisions, the community should continuously monitor the market and remain open to a range of possibilities.
Source: Coindesk
