Beyond the Bounds of Axie Infinity
Axie Infinity's Token Soars 12% Following Game's Listing on Apple App Store
Axie Infinity Game Makes Debut on Apple App Store in Key Markets
Axie Infinity's native cryptocurrency AXS witnessed a remarkable rally after CoinCryptoUs's report on the debut of Axie's card-based strategy game on the Apple App Store. The blockchain-based play-to-earn project attracted significant attention, leading to a surge in AXS's value.
Following the announcement, AXS experienced a remarkable surge of more than 12%, rising from $7.16 to $8.04. This significant increase positioned AXS as the leading gainer on CoinDesk Indices' leaderboard. At the time of reporting, AXS was set to achieve its highest single-day percentage gain since January 22. Previously, in April, the cryptocurrency had encountered a downturn, declining by over 3% for the third consecutive month. This decline was attributed to the token unlock and a general sense of risk aversion prevailing in the broader market.
Initially, Apple store users in Latin America and Asia, spanning countries such as Argentina, Colombia, Peru, Mexico, Venezuela, Indonesia, Malaysia, and Vietnam, will embark on an immersive journey into the captivating realm of Axie Infinity, a card-based game. Boasting an impressive installation count of 1.5 million across all platforms, this creation by Sky Mavis is set to transcend boundaries as the developer strategizes to expand its influence, targeting Google and Apple mobile users, thus bringing the game's exhilarating experience to an even broader audience.
Open interest spikes
The surge in AXS's price was accompanied by a significant surge in the notional futures open interest, indicating a substantial increase in the monetary value invested in open futures contracts. This indicates a notable influx of fresh capital into the market.
Coinglass reported a remarkable surge in the notional open interest, soaring to over $75 million from its previous level of nearly $40 million in just one day. This spike represents the highest recorded value since February.
Nevertheless, the leverage seemed to be tilted towards the bearish sentiment, as the funding rates in the perpetual futures market continued to stay in negative territory. Negative rates signify the prevalence of bearish short positions dominating the market.
Investors likely opted to short perpetual futures contracts in order to safeguard their long positions in the spot market against potential sudden price declines. This strategy reflects a lack of confidence in the long-term sustainability of the price rally.
The chart shows AXS's funding rate tanked below zero as the cryptocurrency rallied. (Coinglass)