Axie Infinity’s In-Game Tokens AXS, SLP Rise Over 5%
In-game tokens AXS and SLP have soared over 5% in the last five days because of Axie Infinity’s economic overhaul, which began in early January. This has brought about a reduction in the issuance of Smooth Love Potion (SLP) tokens which were earned by gamers as a reward.
Axie Infinity has removed the adventure mode and daily quest rewards, which accounted for 40% and 14% of all SLP created within the ecosystem. The platform seeks to reduce the tokens further by around 54%. This will bring about significant growth as the game had been hit by SLP tokens high inflation. Analysts said 4x more SLP tokens were being supplied per day than demanded through breeding. This highlights the token’s poor price performance over the past year.
As such, both gaming tokens have recorded significant highs recently. As of this morning, SLP and AXS are up by 27% and 10%, respectively. Both are up by around 30% over the past week. Axie Infinity believes this will supercharge the competitive Axie scene and create more demand for quality teams. The play-to-earn startup hopes to create $6 million worth of prize pool for Season 20.
AXS demand soars
Serving as a governance token for the Axie Infinity protocol, AXS acts as a legal tender to purchase in-game NFTs. Users can utilize AXS to generate new Axies through the existing ones. It should be noted that Axie Infinity uses a dual-token structure.
The recent revamp of the platform has prompted the buying of AXS which has helped its price to spike. AXS crossed above its 200-4H exponential moving average (200-4H EMA) on Sunday. Analysts have highlighted this as the resistance mark, which AXS has reclaimed successfully.