GameFi Sector Comes Alive as Market Cap Surges Over the Past Week

GameFi tokens are surging, led by Axie Infinity's remarkable weekly gain and significant boosts in other gaming projects.

In a surprising turn of events, GameFi tokens are experiencing a significant rally, propelling the sector's market capitalization upwards by over 7% over the past few days. Axie Infinity (AXS) has taken the lead with an impressive 28% weekly gain, accompanied by a remarkable 62% surge in its in-game currency, Smooth Love Potion (SLP). Gala Games (GALA) and STEPN have also joined the upward trajectory with gains of 47.5% and 18% respectively in the past week.

GameFi Tokens Surge as Axie Infinity Leads the Charge with Impressive Gains

The GameFi sector is currently witnessing a surge in market capitalization, with a notable increase of over 7% within the past couple of days. Leading this charge is the widely popular blockchain-based game Axie Infinity (AXS), which has seen a remarkable weekly gain of 28%. Notably, Axie Infinity's in-game currency, Smooth Love Potion (SLP), has skyrocketed by an astonishing 62% over the same week.

But Axie Infinity is not the only player in this exhilarating rally. Gala Games (GALA) has also enjoyed an impressive 47.5% surge in value over the past week, while the innovative blockchain project STEPN is showing an 18% increase as well.

The rally is not limited to these leading players alone. Several other top web3 games and gaming infrastructure projects have also experienced substantial double-digit gains throughout the week. For instance, The Sandbox has marked a remarkable 16% increase, Illuvium and Enjin have surged by 22%, and ImmutableX has enjoyed a 12% boost.

Axie Infinity's Resurgence and Season 6 Launch

The resurgence of Axie Infinity comes on the heels of the highly anticipated launch of Season 6 of "Axie Infinity Origins" on 4 October 2023. This season launch brought renewed excitement to the Axie Infinity community, as users competed for a share of 112,000 AXS, valued at approximately $650,000, in various prizes. The new season also introduced updated in-game mechanics and aimed to reduce onboarding friction for both new and existing players.

Interestingly, it is worth noting that AXS had hit a new low for 2023, trading at just $4.09 on 19 October 2023, a mere two days before a substantial unlock event. On 21 October 2023, a total of 15.13 million AXS, equivalent to 11.5% of the token's supply, were unlocked and distributed to large investors. Traditionally, the entry of such a significant volume of tokens into the market might be seen as a precursor to bearish price action. However, the unlock coincides with the recent surge in AXS, prompting intriguing discussions among market observers.

Axie Infinity's Impact on Blockchain Gaming

Axie Infinity first captured the imagination of the cryptocurrency world during the bull run of 2021 when AXS's market capitalization surged past the $10 billion mark in November 2021. The game was widely credited with helping many in the Philippines weather the economic challenges posed by the COVID-19 pandemic through its innovative play-to-earn mechanics.

Over the past two years, Axie Infinity has been diligently working to reinvent itself after facing a major setback in May 2022 when a $600 million exploit of its Ronin bridge shook the ecosystem. Despite the challenges, the team behind Axie has continued to innovate, bringing exciting updates to the game and fostering a resilient community.

Growing User Activity and Community Engagement

The recent rally in Axie Infinity is further substantiated by metrics indicating a surge in user activity and community engagement. According to data from CryptoQuant, the number of active AXS addresses has surged from a modest 173 on 15 October 2023 to a remarkable three-month high of 445 on 24 October 2023. Additionally, figures from DappRadar reveal a significant 22% increase in weekly Axie Infinity players, with player numbers rising from 13,000 on 18 October 2023.

The combination of these factors underscores the ongoing resilience and appeal of Axie Infinity within the GameFi sector. With exciting developments and a dedicated community, the game continues to captivate both existing and new players, driving its impressive market performance and the broader GameFi market rally.

As the GameFi sector continues to evolve and innovate, it remains an exciting space to watch, with Axie Infinity leading the way with its remarkable resurgence and the promise of more exciting seasons to come.

Price Overview

Over the past 24 hours, AXS’s positive momentum seems to have taken a brief pause. According to the cryptocurrency price tracking website CoinStats, the altcoin’s price was down 2.83%. Nevertheless, its performance throughout the past 7 days was still well in the positive zone. CoinStats data indicated that AXS was up 19.96% on the weekly timeframe.

Price chart for AXS (Source: CoinStats)

AXS was able to reach a 24-hour high of $5.96, but has since retraced to trade at its current level. As a result, it was trading much closer to its daily low, which was situated at $5.6.

The cryptocurrency was also outperformed by the leading cryptocurrency Bitcoin (BTC) during the past day of trading. At press time, AXS was down 2.73% against BTC. This meant that 1 AXS token was worth approximately 0.00016426 BTC.