The Axie Infinity project (AXS) has been bullish for most of the year. Axie Infinity is a blockchain-based game that involves battling and trading NFT in-game assets. Due to the NFT nature of the game, it is partially owned by the game players. Over the past year, the AXS has increased in price exponentially. Currently, the price of 1 AXS is $62.19. Where will it be one or even five years from now?
What are the Appropriate Metrics for AXS?
Cryptocurrency projects are not all the same. Some metrics will apply to some crypto-assets and not to others. For example, Bitcoin’s only use case is as a store of value and carrying out transactions. Hence, a high trading volume for BTC shows an increase in usage and number of holders, directly affecting the price.
However, AXS has many use cases. For example, it is the governance token for the AXS DAO and a payment method for in-game purchases. Holders can stake AXS and earn passive income. In addition to that, it is the gateway into the Axie Infinity metaverse. Therefore, to predict the price of AXS, the most crucial metric would be the token’s trading volume.
Axie Infinity (AXS): Trading Volume
The Axie Infinity ecosystem has an NFT marketplace. In 2021, the Axie NFT marketplace saw a burst of activity. Trading volume on the platform rose to over $1 billion. Most of the purchases made on the NFT marketplace were in-game items for the Axie Infinity blockchain game. The fact Axie Infinity sold game items worth over $1 billion to fans shows massive use-case for the token.
Where will the Axie Infinity Price be by the End of 2021?
As of the time of writing, AXS is up 8.8% for the day. The token reached its ATH of $93.68 on September 4th. Following Bitcoin’s massive $10,000 flash crash, the token (and the entire market) followed suit. The price of AXS has dropped 37% from the ATH and is sitting at $62 currently.
AXS found support at the previous low of $49 and is currently bouncing back up. Axie portrays a competitive market going into the end of the year. Every crypto asset in the market at this point depends on the action of BTC. Finally, when BTC breaks its $60K resistance, AXS can ride the alt season bullish rally to new ATHs.
The Wallet Investor predicts that AXS will be trading at $146 in the next year. At this rate, by 2026, AXS will be $487 per token on the open market. These predictions are reasonably conservative because AXS might as well hit $200 by the end of the year 2021.
Conclusion
To summarize, AXS is showing promise in its price action. When it decides to move, it moves with big price jumps before resting. Previously, AXS price push-up over 150%. If this repeats, this price movement between now and December, AXS will be sitting at $130 by December 2021. Consequently, AXS is a profitable investment opportunity in both the near and far future.