Axie Infinity price has been in a strong sell-off this year as demand for its ecosystem wanes. The AXS token crashed to a low of $9.98, which was the lowest level this year. It has plunged by more than 90% this year, making it one of the top underperformers. So, will Axie Infinity come back to life?
Axie Infinity demand sinks
Axie Infinity had a strong performance in 2021 during the crypto rally. At the time, millions of users were using its platform to play and earn the Smooth Love Potion (SLP). AXS rose as investors predicted that it was a major gaming disruptor.
This year, however, Axie Infinity has had a tough performance. For one, the Smooth Love Potion and AXS prices have plunged. As a result, gamers in its ecosystem have found playing in its ecosystem not being worth it. The situation worsened after the Ronin hack that led to losses worth over $650 million.
This explains why the number of users has plunged. According to DappRadar, the number of unique active wallets in the ecosystem has dropped by more than 36% in the past 30 days. At its peak, it had much more users per month. The number of transactions has crashed to about 2.7 million in the past 30 days.
Axie Infinity is not alone. Other metaverse-related platforms have seen their active users plunged. For example, data by DappRadar shows that Decentraland has just 650 daily active users. Sandbox, the Softbank-funded platform has about 39k daily active users, according to its co-founder. DappRadar estimates that it has less than 1k. So, what next for Axie Infinity?
Axie Infinity price prediction
The daily chart shows that the AXS price has been in a strong bearish trend in the past few months. This decline saw the coin crash below the important support level at $11.80, which was the lowest level on Saturday 19. It has crashed below all moving averages while volume has dropped.
Therefore, the path of the least resistance for the coin is lower. If this happens, the next level to watch will be $5, which is about 50% below the current level. A move above the resistance at $11.8 will invalidate the bearish view.