AXIE INFINITY (AXS) AXES ALMOST HALF ITS VALUE FOLLOWING 971% BULL RUN

Last updated: June 19, 2025, 23:20 | Written by: Linda Xie

The world of cryptocurrency is known for its volatility, and few coins have demonstrated this more dramatically than Axie Infinity (AXS).Riding a wave of popularity fueled by its unique play-to-earn model, AXS experienced a truly meteoric rise, surging an astounding 971% in just 23 days.This supersonic rally, however, proved to be unsustainable, as the token has since seen a significant correction, axing almost half of its value. On July 5, Axie Infinity passed 350,000 daily active users, an impressive figure insofar as its DAU tally stood only at 100,000 at the beginning of June. The thing is, it quickly surpassed this 350,000 figure in only a week, reaching nearly 500,000 by July 11. Source: Twitter/The Jiho.This rollercoaster ride highlights both the incredible potential and inherent risks associated with investing in the rapidly evolving landscape of blockchain gaming and decentralized finance.We'll delve into the factors that contributed to this explosive growth, the reasons behind the subsequent correction, and what the future might hold for Axie Infinity and its native token, AXS. Related: Axie Infinity (AXS) axes almost half its value following 971% bull run. Bitcoin s rebound from below $30,000 has sent altcoins in a similar retracement trajectory, thereby benefitingIs this just a temporary setback, or a sign of deeper issues?Understanding the dynamics at play is crucial for anyone considering investing in or engaging with this popular blockchain game. A supersonic rally in the Axie Infinity market that saw its native token AXS surge by 972% in just 23 days is now risking exhaustion. AXS price Fib fractal The AXS/USD exchange rate Axie Infinity (AXS) axes almost half its value following 971% bull runFrom Fibonacci retracements to daily active users, we'll explore the key metrics and market trends impacting the price of AXS.

Understanding the Axie Infinity Phenomenon

Axie Infinity is more than just a game; it's a digital world where players can collect, breed, battle, and trade creatures known as Axies. A supersonic rally in the Axie Infinity market that saw its native token AXS surge by 972% in just 23 days is now risking exhaustion. AXS price Fib fractal. The AXS/USD exchange rate plunged to as low as $16.02 on Monday, four days after topping out at $29.86.These Axies are non-fungible tokens (NFTs), meaning they are unique and can be owned and traded on the blockchain. Skip to main content Bitcoin Insider. MenuThe game's play-to-earn mechanic has been a major draw, allowing players to earn real money by participating in the game's ecosystem.But what exactly fueled the initial surge in AXS value?

The Rocket Fuel: Play-to-Earn and Growing User Base

The primary driver behind Axie Infinity's success is its innovative play-to-earn model.Players can earn Axie Infinity Shards (AXS), the game's native token, and Smooth Love Potion (SLP) by battling other players, completing quests, and participating in various in-game activities. Axie Infinity Shards (AXS) price, live charts, news and more. Axie Infinity Shards to USD price is updated in real time. Learn about Axie Infinity Shards, receive market updates and more.These tokens can then be exchanged for other cryptocurrencies or fiat currency, providing a tangible income stream for players.

This earning potential has attracted a massive influx of new users. - Discover the latest Axie Infinity USD price with real-time charts, market cap, and news. Learn about current trading trends and historical data.Consider these statistics:

On July 5th, Axie Infinity boasted over 350,000 daily active users (DAU).
Just a week later, on July 11th, that number had skyrocketed to nearly 500,000.

This exponential growth in the user base directly correlated with the surge in demand for AXS, driving its price upwards.The more people who play and want to participate, the greater the demand for the token.

The Inevitable Correction: What Goes Up Must Come Down

While the initial surge was impressive, the cryptocurrency market is notorious for its volatility. CRYPTONEWSAXS/USD showed signs of rebound at $16.38, a level that coincides with the 61.8% Fibonacci level that, in turn, constitutes a Fibonacci retracemenThe 971% bull run proved to be unsustainable, and a correction was almost inevitable. A supersonic rally in the Axie Infinity market that saw its native token AXS surge by 972% in just 23 days is now risking exhaustion. AXS price Fib fractal The AXS/USD exchange rate plunged to as low as $16.02 on Monday, four days after topping out at $29.86. In doing so, the pair attempted toSeveral factors contributed to this downturn.

Overbought Conditions and Profit-Taking

After such a rapid increase in price, AXS entered overbought territory.This means that the price had risen too quickly and was due for a correction.Many investors, seeing the peak, decided to take profits, selling their AXS holdings and contributing to the downward pressure on the price. Axie Infinity (AXS) axes almost half its value following 971% bull runThe age-old investing adage, ""buy low, sell high,"" comes into play here. A supersonic rally in the Axie Infinity market that saw its native token, Axie Infinity Shards (AXS), surge by 972% in just 23 days is now risking exhaustion. The AXS/USD exchangeSmart investors often realize gains after a substantial run-up.

Technical Analysis: Fibonacci Retracement

Technical analysts use tools like Fibonacci retracement levels to identify potential support and resistance areas.The AXS/USD exchange rate showed signs of rebound around $16.38, a level that coincided with the 61.8% Fibonacci retracement level.This level often acts as a support zone, but breaking below it can signal further downside.

Think of it like this: the price of AXS is like a ball bouncing up a set of stairs (the bull run).The Fibonacci retracement levels are like the steps themselves.The ball might bounce off a step (support), but if it breaks through the step, it's likely to fall to the next one.

Broader Market Trends: Bitcoin's Influence

The cryptocurrency market is often heavily influenced by Bitcoin (BTC).When Bitcoin rallies, altcoins (alternative cryptocurrencies) tend to follow suit.Conversely, when Bitcoin corrects, altcoins often experience even steeper declines.Bitcoin's rebound from below $30,000 provided some temporary relief for AXS, but the overall market sentiment remained cautious.

Analyzing the Price Drop: A Deep Dive

The AXS/USD exchange rate plunged to as low as $16.02 on a Monday, just four days after reaching a high of $29.86.This rapid decline highlighted the speed and severity of the correction.But what does this mean for current and potential investors?

Is This a Buying Opportunity or a Warning Sign?

That's the million-dollar question.For some, the price drop represents a buying opportunity – a chance to acquire AXS at a lower price with the expectation that it will eventually rebound.For others, it's a warning sign of a potential bubble bursting and a reason to stay away.

Here are some factors to consider when making this decision:

Long-Term Potential of Axie Infinity: Do you believe in the long-term viability of the game and its play-to-earn model?Is the development team actively working on improving the game and attracting new players?
Current Market Conditions: What is the overall sentiment in the cryptocurrency market?Are Bitcoin and other major cryptocurrencies showing signs of recovery?
Your Risk Tolerance: Are you comfortable with the volatility of the cryptocurrency market?Can you afford to lose a significant portion of your investment?

Before making any investment decisions, it's crucial to do your own research and consult with a financial advisor.

The Future of Axie Infinity: Challenges and Opportunities

Despite the recent price correction, Axie Infinity still has significant potential.However, it also faces several challenges that it needs to overcome to ensure its long-term success.

Challenges Facing Axie Infinity

Sustainability of the Play-to-Earn Model: The long-term sustainability of the play-to-earn model is a major concern.If the supply of AXS and SLP exceeds the demand, the value of these tokens could decline, making the game less attractive to players.The developers need to carefully manage the tokenomics to ensure a healthy and balanced ecosystem.
Competition from Other Blockchain Games: The blockchain gaming market is becoming increasingly competitive.New games with similar or even more innovative mechanics are constantly emerging.Axie Infinity needs to stay ahead of the curve by continuously improving its game and offering unique features.
Regulatory Uncertainty: The regulatory landscape for cryptocurrencies and blockchain games is still evolving.Uncertainty about future regulations could negatively impact the adoption and growth of Axie Infinity.
Accessibility and Affordability: The initial investment required to start playing Axie Infinity (purchasing three Axies) can be a barrier to entry for many potential players.The developers need to find ways to make the game more accessible and affordable to a wider audience.

Opportunities for Growth

Despite these challenges, Axie Infinity also has several opportunities for growth.

Expanding the Axie Infinity Ecosystem: The developers are working on expanding the Axie Infinity ecosystem beyond just battling.This includes introducing new game modes, features, and partnerships.
Attracting New Players: By focusing on improving the game's accessibility, affordability, and marketing, Axie Infinity can attract new players and continue to grow its user base.
Developing a Strong Community: Axie Infinity has a strong and passionate community.By fostering this community and empowering players, the game can build a loyal following that will support its long-term growth.
Exploring New Technologies: Axie Infinity can explore new technologies such as virtual reality (VR) and augmented reality (AR) to enhance the gaming experience and attract new players.

Practical Advice for Axie Infinity Investors

Investing in cryptocurrencies, including AXS, can be rewarding, but it's essential to approach it with caution and a well-thought-out strategy.

Due Diligence is Key

Before investing in Axie Infinity or any other cryptocurrency, conduct thorough research.Understand the project's fundamentals, its team, its tokenomics, and its long-term vision.Don't rely solely on hype or social media trends.

Diversify Your Portfolio

Don't put all your eggs in one basket.Diversify your portfolio by investing in a variety of cryptocurrencies and other assets.This will help to mitigate your risk and protect your capital.

Manage Your Risk

Only invest what you can afford to lose.Cryptocurrency investments are inherently risky, and you should be prepared for the possibility of losing your entire investment.Set stop-loss orders to limit your potential losses.

Stay Informed

The cryptocurrency market is constantly evolving.Stay informed about the latest news, trends, and developments.Follow reputable news sources and analysts, and participate in online communities.

Think Long-Term

Don't get caught up in short-term price fluctuations.Focus on the long-term potential of Axie Infinity and its underlying technology.Have a long-term investment horizon and be patient.

Common Questions About Axie Infinity and AXS

What is Axie Infinity?

Axie Infinity is a blockchain-based game where players can collect, breed, battle, and trade creatures called Axies, which are represented as NFTs.

What is AXS?

AXS (Axie Infinity Shard) is the native token of the Axie Infinity ecosystem.It is used for governance, staking, and paying fees within the game.

How do you earn money playing Axie Infinity?

Players can earn money by battling other players, completing quests, participating in events, and breeding and selling Axies.

Is Axie Infinity a good investment?

Whether or not Axie Infinity is a good investment depends on your individual circumstances, risk tolerance, and investment goals.It's crucial to do your own research and consult with a financial advisor before making any investment decisions.

What are the risks of investing in AXS?

The risks of investing in AXS include market volatility, regulatory uncertainty, competition from other blockchain games, and the potential for the play-to-earn model to become unsustainable.

Conclusion: Navigating the Axie Infinity Landscape

The recent price correction of Axie Infinity (AXS) following its massive bull run serves as a stark reminder of the volatile nature of the cryptocurrency market.While the game's innovative play-to-earn model and growing user base contributed to its initial success, the subsequent correction highlights the importance of understanding market dynamics, managing risk, and conducting thorough research before investing.The future of Axie Infinity hinges on its ability to overcome challenges related to sustainability, competition, and regulation, while also capitalizing on opportunities for growth and expansion.Key takeaways for investors include the necessity of due diligence, portfolio diversification, risk management, and a long-term investment horizon.Ultimately, whether or not AXS is a worthwhile investment depends on individual circumstances and a deep understanding of the project's potential and risks.Remember to always do your own research and consult with a financial advisor before making any investment decisions.