Over 4.8 million Axie Infinity tokens (AXS) are scheduled to be unlocked today, seeing the token surge 39% in the past 24 hours. But is this exit liquidity?
The price of AXS tokens has been skyrocketing in the past 24 hours. The token is trading at around $12.85 as of writing, with a market cap of over $1.5 billion.
But will the rally continue as over 4.8 million tokens emerge from the vesting period?
1.8% of AXS Supply to Be Unlocked
According to data from TokenUnlocks, over 4.8 million AXS tokens, which make up 1.8% of the total supply, will be unlocked today. The token has a maximum supply of 270 million, out of which 32% of tokens are locked.
The community fears that the bulls are doing an exit pump with incoming unlock. During the previous unlocking on Oct. 24, 2022, the price of AXS fell dramatically. Twenty-two million AXS tokens were unlocked, primarily contributing to the decline in AXS price.
However, Aleksander Larsen, the co-founder and COO of Axie Infinity, clarified that token unlock is a “business as usual.” He tweeted that unlocked tokens follow a “separate issuance schedule.” The co-founder further explained that “token issuance in $ terms is lower than $ flowing into an ecosystem, making it sustainable in the long term.”
Will Axie Infinity Sink or Become the Biggest Metaverse Experience?
The price of both AXS and Smooth Love Potion (SLP), the tokens earned by playing the blockchain game, have fallen drastically in the crypto winter. As a result, the players are moving away from the Axie Infinity ecosystem due to the reduction in earnings.
According to data from ActivePlayer.io, the average number of monthly players in the past 30 days is 432k, roughly the same as in Nov. 2020. The average number of monthly players has declined from a peak of 2.7 million in Jan. 2022.
Considering the players’ count and the increasing supply, Felix Hartmann predicts that the ecosystem will be “pretty close to dead.” Hartmann is the managing partner at Hartmann Capital, a crypto asset management firm.
On the other hand, the community believes that Hartmann is wrong and that “Axie will be the biggest metaverse experience.”
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BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.