Note that the number of active Axie players was 2.78 million in early 2022, and the number dropped to 701,447 in October 2022. One of the causes of its decline in popularity was the Ronin Bridge hack in March 2022. Since the Ronin network has seen a network breach, the number of active players is decreasing. Therefore, it is one of the reasons behind the price drop of AXS.
Unlocking AXS tokens
According to reports, Axie Infinity released 10 million limited tokens to investors and insiders at the end of October. It was his first lot, which was part of his $200 million unlock event.
After the vesting period (the time when investors cannot sell their investments for a certain period) expired in October 2022, investors were free to sell their AXS tokens. This is therefore another likely reason behind the drop in token prices.
Fed rate forecast
Federal funds rates are an important factor contributing to the growth of an economy. Therefore, they can also affect cryptocurrency prices in a certain way.
According to the latest press release, there may be another increase in tariffs. Although the final decision will be made on December 14, there is a lot of data that favors the increase in federal funds rates. Explore.
Let’s talk first about the US November inflation data. Inflation is expected to continue to rise, which may result in a 75 basis point hike in the Fed’s rate. Another factor is the labour market, i.e. the employment situation in the country.
Recent reports state that in October 2022 US employers hired more employees than necessary, and the labor market is stronger than expected in 2022. According to the BLS press release, total nonfarm employment increased by 261k in October. Note that in order to squeeze liquidity, the US Fed aims to maintain an unemployment rate of 7.5%, and currently stands at 3.7%. It means there is the highest chance of a Fed rate hike.
How will rising federal funds rates affect Axie Infinity?
Raising interest rates by the Federal Reserve can certainly result in spending cuts by investors.
High inflation and, therefore
, high feeding rates can have an impact on people not to risk their money in games and therefore in Axie Infinity. A rise in the Fed rate can lead investors to choose other investments, such as banks, brokerage firms, and cash-rich firms, instead of speculative investments (such as cryptocurrencies), such as AXS.
In case more people reduce and sell their AXS tokens in this scenario, cryptocurrency prices will continue to remain low.
Axie Infinity Price Prediction 2022
| Average Axie Infinity Price Prediction 2022 | $17 |
Axie Infinity Coin Price Prediction And Forecast: How to Buy AXS Coin?
Axie Infinity is one of the best performing metaverse tokens. AXS is the native token of Axie Infinity Network. It is built by the Vietnamese company Sky Mavis for the commercial resources earned in the video game Axie Infinity.
Like the rest of the tokens, AXS can be purchased by following these steps:
- Choose a Crypto Exchange that offers Axie Infinity tokens
- Create your account with Crypto Exchange
- Fund your portfolio
- Buy AXS
- Store AXS in Crypto Wallet
Some of the exchanges that offer AXS tokens for trade are 1. Binance 2. Support 3. Gate.io 4. Coinbase
