Axie Infinity's August NFT performance marks the beginning of this doom
Before there was so much hype about NFTs, Axie Infinity [AXS] was king of the market. As a result, AXS generated billions of dollars in sales volume.
However, the decline of AXS digital collectibles has been disappointing. In August, AXS NFT volume slightly exceeded $5 million. According to CryptoSlam, this was a better performance than their records in the previous month of July.
All the facts
The drop in volume was the fourth time that recorded sales were below double digits. The last time there was an eight-figure count was in April, when sales hit $19 million. May came and it was $7 million, while June sales were about $3.20 million.
According to the data available at the time of publication, there were only 339,921 transactions at an average price of $13.41. The buyers who participated in these transactions were also limited to 44,558. Unfortunately, this was the first time AXS had posted such a low turnout in over fifteen months.
The losses did not end there. A look at the August 2021 volume showed that AXS reached $848.13 million in sales, involving 1.85 million transactions at an average price of 0.0078 ETH ($457.42).
So AXS lost over $800 million in sales year over year (YoY). Perhaps the bearish state of the crypto and NFT market had an impact, but the drop has proven to be massive compared to other major NFT protocols.
Where has this left AXS?
Like its digital collection, the AXS cryptocurrency also failed to excite its investors and the crypto community. For August, AXS did not get as much as $20 per token.
According to CoinMarketCap, AXS was trading at $13.86. Additionally, its 24-hour trading volume decreased by $104.06 million, which represented a drop of 21.61%.
For AXS HODLers, the road to recovery could be longer than anticipated. This is because indications from the Exponential Moving Average (EMA) showed that there was very high selling pressure.
According to the charts, the 20 EMA (blue) was well below the 50 EMA (blue). With this, the hopes of an upward movement in the short term could end.
It is a similar situation in the medium and long term, as the 200 EMA (cyan) also maintained its positive position above the 20 EMA and the 50 EMA.
Sep 02, 2022