Axie Infinity (AXS) Up 80% After Migrating to Ronin Sidechain

189
SHARES
1.5k
VIEWS
ADVERTISEMENT

Related articles


Non-fungible tokens were one of the hottest sectors of the cryptocurrency market from the beginning of the year through March, but as is the nature of the crypto sector, the NFTs cooled off significantly in April when the hype subsided and fees for the Ethereum (ETH) were high . The network hampered the ability of buyers and sellers to interact with the logs.

The challenge of high fees eventually led some projects like Axie Infinity (AXS) and Smooth Love Potion (SLP) to migrate to other networks or adopt Layer 2 solutions to reduce costs. This move, as well as a drastic reduction in ETH gas fees over the past two weeks, could be part of the reason for the strong rally in AXS and SLP over the past week.

AXS / USDT 4-hour chart. Source: TradingView

Data from and TradingView show that the price of AXS rose 83% from a low of $ 6 on April 25 to a high of $ 11 on April 29, while the price of SLP rose from a low of $ 0.035 on April 25 April rose more than 1,000% to a new record high of $ 0.396 on May 2nd.

SLP / USDT 4 hour chart. Source: CoinGecko

Several reasons for the recent price growth of AXS and SLP are the migration to the Ronin sidechain for Ethereum, the increasing acceptance in the community and the sponsorship of a well-known crypto influencer that has helped attract new participants to the community.

Switching to the Ronin Sidechain lowers fees

The most impactful event for AXS and SLP in the past two weeks has been the full launch of Ronin Phase 2, where users of the platform can click their Axies, who are the characters in the game, along with their AXS, SLP and ETH tokens Ronin sidechain, to keep dealing with the protocol.

Ronin is an Ethereum sidechain, originally announced in June 2020, and designed specifically for the Axie Infinity community to support scaling and a smoother gaming experience for a large number of users.

The full migration to Ronin was completed on April 28th, followed by a 1,000% price increase for SLP.

Crypto influencer sheds light on Axie

A second blow to the Axie community was the May 3rd announcement that the pseudonymous digital landowner and crypto whale Flying Falcon had donated money to the Sponsor-A-Scholar program set up by Yield Guild Games, an open gaming community .

The move has helped draw attention to the fact that Axie Infinity is more than just a collecting game, but rather a growing community able to support its members and generate a steady return on the assets invested .

The momentum for the AXS token and the Axie Infinity ecosystem has been increasing for months in anticipation of the migration to the Ronin side chain.

According to Cointelegraph Markets Pro, market conditions have been favorable for AXS for some time.

The VORTECS ™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points such as market sentiment, trading volume, recent price movements and Twitter activity.

VORTECS ™ Score (green) vs. AXS price. Source: Cointelegraph Markets Pro

As can be seen in the table above, the VORTECS ™ Score for AXS in the green zone was increased for much of April, with the system registering a score of 78 on April 25th, approximately 2 hours before the price was up against 82% rose over the next two days.

Now that the Axie Infinity ecosystem moves to a lower fee environment and the number of daily active users continues to grow, AXS and SLP are two NFT tokens that may keep rising, especially as blockchain games become a common form of entertainment .

The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading step is associated with risks. You should do your own research when making a decision.