Are these SLP’s telltale signs of what’s next for Axie Infinity [AXS]

city Santiment city Santimentin UPS AXY Infinity Santiment

20.04.2022 - 10:39

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ambcrypto.com:

The rise and fall of Axie Infinity is a saga that many have followed over the past year. However, not everyone is ready to give up on the game just yet.

The Ronin Daily, a Twitter account keeping track of Axie Infinity updates, posed a simple question: “Are we doomed?”

Presenting a mix of data points, the platform claimed that daily active users, or those playing the game, are dropping quickly due to the falling price of Smooth Love Potion [SLP]. If you’re wondering what exactly this is, SLP is the token that helps Axies breed in the game.

<p lang=«en» dir=«ltr» xml:lang=«en»>from Nov until now: – 53% DAU decrease – 1.4 M or 53% Total account hold axies but not playing axie infinity V2 – 15% account hold more axies – SLP heavily correction

There is no factor for DAU growth beside of $SLP

— Ronin Daily (@daily_ronin) April 19, 2022

So, does Axie Infinity’s success really hinge on the performance of SLP? Let’s investigate.

Despite the devastating Ronin hack that led to the loss of more than $600 million, AXS saw a strong rally in late March. This was later followed by sideways movement and then, a definite decline.

However, what is surprising is that instead of more AXS hitting the exchanges, AXS supply on exchanges has been falling throughout April. This is a sign of buying activity.

Source: Santiment

In fact, at press time, AXS was trading at $46.03, after rising by 5.09% in the last 24 hours alone. One reason for this could be ecosystem updates, with Ronin Daily claiming that reward structures had changed. In the long-term though, AXS’s price is moving sideways – Not an encouraging sign of high user activity.

However, SLP is taking the blow hard. Santiment data also revealed that SLP exchange supply has been going up since late