Axie Infinity Revamps Reward Structure; AXS Gains 50%

  • AXS saw its price rising by 50% after Axie Infinity revamped its reward structure.
  • The play-to-earn platforms aim to ensure the Axie team within the ecosystem access more demand.
  • The updated system will handle the asset’s inflation problem from the other coin, SLP, and possibly create increased AXS demand.

Axie Infinity (AXS) recently announced changes made to the reward structure for the Player vs. Player competition. The news had its native coin, AXS, rallying by a whopping 50%. Moreover, the broad crypto spectrum’s bullish actions supported the alt’s upside.

Axie Infinity Avoids Economic Collapse

The p2p platform boosted AXS rewards to 117,676 from 3,000 for the coming season and increased the leaderboard slots to 300K. Axie Infinity believes the move will improve the Axie environment and ensure surged demand for Axie teams within the ecosystem. It added that the deal would formulate a prize pool worth $6 million for season 20.

Axie Infinity protocol uses AXS as its governance token. Market participants use AX as the currency to buy in-game NFTs within the Axie market. Nevertheless, Axie Infinity leverages Smooth Love Potions (SLP), a dual-coin structure, to award gamers that clear levels and complete daily quests.

Players burned SLPs to allow Axies, in-game virtual pets, to breed. Inflation surged as Axie Infinity rewarded players with more SLPs than the burned token. Axie Infinity removes sectors that generated more SLPs. Though daily quests attracted active players daily, it brought a 45 million SLP supply problem within the Axie economy.

Axie Infinity said its economy needs decisive and drastic action to prevent permanent and total economic collapse. Meanwhile, the awaited Season 20 upgrade will reduce SLP supply, increasing Axies value. That can attract increased AXS demand and gamers to the Axie Infinity network.

Axie Infinity Eyes 37% Surge

AXS might experience a 37% ascent to $98 if Axie Infinity validates the saucer pattern on its 4hr chart. Meanwhile, the token might encounter resistance near a 38.2% FIB retracement zone near $71, matching the governing technical pattern’s neckline. Another hurdle might showcase a 50% retracement zone at $79.

Nevertheless, increased selling momentum will have AXS declining to the 200 4hr Simple Moving Average at $63.

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