2022’s Shockers ForAxie Infinity
The year 2022 had brought two major shockers for Axie Infinity so far. The ultimate shocker for Axie Infinity was however the notorious hack (which is now known as “Ronin Hack”) which occurred on 23rd March, 2021. The hack also led Alexsander Larsen, Chief Operating Officer of Sky Marvis to own the burden of the unfortunate hack. The second shocker was in the same month of March i.e. on 6th March and involved the world’s lead crypto coin i.e. Bitcoin. On that day, a major slump took place causing huge adverse impact on Bitcoin. As a result of the slump, rapid drops in values of entire cryptocurrencies, including the altcoins etc. were seen on large scale basis.
The slump even reflected huge impact upon AXS and caught it off-guard by activating continuous swift value decrease in AXS.
Both events i.e. Bitcoin slump and Ronin Hack are still dominating the progress of AXS.
AXS’s Pre-March Position – Beyond Range Peak
Until the 6th March, 2022, AXS’s bulls were there dominating the altcoin’s market. For instance, two weeks after the 24th January, 2022, Axie Infinity price nearly doubled because of the bulls. Prior to 24th January, the price of the altcoin was US$ 44.34. However, it took Axie Infinity less than 15 days to increase its value up to US$ 71.93. This meant that in between 24th January till 7th February, 2022, the altcoin saw a surge in value of at least 80%. Certainly, the surge took Axie Infinity well beyond the imagined and non-imagined range peak.
Has Axie Infinity Come Out of The Two Shocks?
For the time being, traders are questioning whether the effects of the two shockers have been overcome by Axie Infinity or not. The fact is Axie Infinity is trying to overcome the impacts but the progress is making it to struggle very hard. Even Alexsander’s statement shows that AxieInfinity wishes to forget the hack and move forward by accepting odd realities as well. However, forgetting the hack is not simple because the incident caused Axie Infinity’s investors a loss exceeding US$ 625 Million. So far the company behind AXS has only arranged US$ 150 Million for compensating the investors.
AXS’s Investors’ Impasse
On the night of 23rd March, 2022, Axie Infinity hasn’t just suffered a loss but also it has lost investors’ confidence as well. Till to date, investors’ trust is deteriorating which is evident from the fact that AXS is losing value on regular basis without a pause. Unfortunately, the altcoin is failing to attract fresh investors because receding market value is stopping new investors eventually.
Market Value to Realized Value i.e. MVRV of Axie Infinity had been subjected to decline since last November. The worst day in Axie Infinity’s history relating to its price was 13th March but AXS started to show signs of recovery. However, the signs were removed when the 23rd March’s shocking incident of Ronin Hack eventually took over the network. So the recovery phase which initiated after 13th March was cut short by the occurrence of the hack attack.
At presently, AXS’s prevailing market value is US$ 47.83 which is slightly better than the value which existed on 24th January, 2022. But considering 7th February’s value of AXS i.e. US$ 71.93, certainly the coin has a long way to go in an effort to recover what it has lost in the meanwhile.
While AXS is trading at US$ 47.83, however, considering its all-time high value, present value of altcoin is immensely undervalued. The value is in effect about 30% less than the value last seen on 7th February, 2022.
So first of all the major hurdle before AXS is to immediately overcome the Ronin Hack. Secondly, altcoin has to make sure that it garners some investors’ attraction. But these days, investors are eying on Metaverse news because Mark Zuckerberg has informed about his latest plans for Metaverse. Thirdly, it needs to reinstate the investors’ confidence as soon as possible by beginning recovery phase.