The Ronin Bridge hack from the North Korean Lazarus Group caused Axie Infinity to suffer major losses this Q3 as the rest of the cryptocurrency market performed relatively well.
The number of daily users of Axie Infinity has declined and long-term negative effects are expected. This has pushed other crypto gaming projects like Decentraland and The Sandbox ahead of Axie, which for some time held its place above them.
Axie was on Decline Well Before Hack
Infinity had been losing users long before the infamous Ronin hack was revealed last week, restricting the movement of digital money out of the virtual world.
It was noted by Sky Mavis, the developer behind Axie Infinity and Ronin, that the number of daily active users (DAU) has fallen by 45% to 1.48 million from November’s peak. The most recent data regarding this was collected the day before the $600 hack was discovered
Axie’s Ronin bridge is a sidechain built to facilitate faster and cheaper transactions for the game. Thankfully after the hack on Ronin, there were no significant price implications on AXS.
AXS Price Action
At the time of writing, AXS traded at $64.58, noting a 1.29% decline in 24-hours and a 6.86% fall over the week. The depreciating number of users on Axie could be correlated with the over 50% fall in price the token saw from December 2021 to January 10.
Nonetheless, the recent market recovery has put AXS above the crucial $60 mark. Furthermore, AXS’s trade volumes have maintained relatively higher levels since the last week of March.
One worrying price trend spotted on AXS’s chart is its RSI making lower lows indicative of selling pressure taking over the coin’s market. In the short term, the $70.2 mark could act as a strong resistance, and a move above the same could ensure further gains for the token.
Author
Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.
