Axie Infinity metrics predict this path for the future, but will AXS follow suit

  • The AXS network growth witnessed a slowdown given the bearish market conditions
  • Axie Infinity’s organic demand witnessed a drop in the last 12 months

Just a year ago, Axie Infinity had made its name as one of the most popular crypto projects out there. Its biggest advantage was its successful implementation of tokenized mechanics, which propelled it to great heights. This first mover advantage allowed its native token, AXS, to become one of the top tokens in the crypto space.

Read Axie Infinity’s [AXS] price prediction 2023-24

Axie Infinity: Back to square one?

AXS, as of 21 November, was trading at a huge drawdown from its historic high, courtesy of the bearish market conditions this year. Axie Infinity’s performance also took a hit in the last 12 months, as the entire crypto segment cooled down. This was reflected in its network growth metric, which has been on an overall bearish trajectory between November 2021 and September 2022.

Axie Infinity network growth

Source: Santiment

Interestingly, despite the observed decline, Axie Infinity’s network growth metric registered its second largest 2022 spike earlier this month. The price also registered a sharp uptick, indicating that there was a large purchase. This observation may confirm that there was still significant interest in Axie Infinity and AXS.

The network growth may offer signs of hope for a strong bounce during the next bullish phase. However, it does not paint a clear picture in terms of network utility. The payment count and daily active addresses metrics may offer better insights in that regard.

Both these metrics revealed that Axie Infinity’s organic utility actually tanked in the last 12 months.

Axie Infinity network utility

Source: Santiment

It might be difficult for Axie Infinity to experience another demand surge without significant network growth and utility.

What will it take for another AXS surge?

Axie Infinity’s tokenomics were the key reason why AXS was so popular in 2021. The only way that the project can replicate such demand organically is by rolling out appealing games that have robust utility for AXS.

Furthermore, Axie Infinity has been using its previous success to cultivate a strong community, as is evidenced by an increased focus on Esports and metaverse gaming.

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This could be considered as an important trajectory for Axie Infinity, because Esports was already a segment worth billions. Focusing on this segment will not only allow the project to grow a strong and active community, but also boost the popularity of its games.

While its future success is not written in stone, Axie Infinity’s efforts may encourage investors to continue holding AXS. Investors should also consider factors such as more competition and less hype over Axie Infinity’s ecosystem before making a decision.

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