Axie Infinity (AXS) re-evaluates 80% after migrating to the Ronin side chain

Non-fungible tokens were one of the most popular sectors in the cryptocurrency market from the start of the year through March, but as is the nature of the cryptocurrency sector, the NFTs cooled off significantly in April when the hype subsided and the commissions on the Ethereum (The ETH- Network hampered the ability of buyers and sellers to interact with the various protocols.

The challenge of high commissions eventually led to some projects like Axie Infinity (AXS) and Smooth love potion (SLP) Switching to other networks or introducing Layer 2 solutions in order to reduce costs. This move, combined with a drastic cut in ETH gas prices over the past two weeks, could be a reason for the strong rally in AXS and SLP over the past week.

AXS / USDT 4-hour chart. Fountain: TradingView

TradingView data shows this AXS price rose 83% from a low of $ 6 on April 25 to a high of $ 11 on April 29, while SLP price rose more than 1,000% from a low of $ 0.035 on April 25 a new high of $ 0.396 rose on May 2nd.

4-hour chart of the SLP / USDT pair. Fountain: CoinGecko
Axie Infinity (AXS) re-evaluates 80% after migrating to the Ronin side chain
Axie Infinity (AXS) re-evaluates 80% after migrating to the Ronin side chain

Several reasons for the recent price growth of AXS and SLP are: The migration to Ethereum’s Ronin sidechain, the increasing acceptance in the community and the sponsorship of a well-known cryptocurrency enthusiast who helped bring new members into the community.

By switching to the Ronin sidechain, the commissions were reduced

The most significant event for AXS and SLP in the last two weeks was the full launch of Ronin Phase 2, where platform users had to migrate their Axies, who are the game’s characters, along with their AXS, SLP, and ETH tokens to the Ronin sidechain in order to continue to interact with the protocol .

Ronin is an Ethereum sidechain, originally announced in June 2020, and designed specifically for the Axie Infinity community to support scaling and a smoother gaming experience for a large number of players.

The full migration to Ronin was completed on April 28th, followed by a 1,000% increase in SLP price.

An influencer focuses on the axes

Another wave of momentum for the Axie community came with the May 3 announcement that pseudonymous digital owner and cryptocurrency whale Flying Falcon had donated money to the Sponsor a Student program. Created by Yield Guild Games, an open community focused on games.

The move helped draw attention to the fact that More than a collectible game, Axie Infinity is a growing community able to support its members and generate a constant return on assets invested.

In anticipation of the migration to the Ronin side chain, the momentum for the AXS token and the Axie Infinity ecosystem has been brewing for months.

According to Cointelegraph Markets Pro, market conditions have been favorable for AXS for some time.

The VORTECS ™ score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points such as market sentiment, trading volume, recent price movements and activity on Twitter.

VORTECS score (green) compared to the AXS price. Fountain: Cointelegraph Markets Pro

As seen in the graphic above, The VORTECS ™ score for AXS rose in the green zone for most of April, and the system posted a score of 78 on April 25, approximately 2 hours before the price rose 82% over the next two days.

After moving the Axie Infinity ecosystem to a lower commission environment and increasing the number of daily active users, AXS and SLP are two NFT tokens that may keep rising, especially as blockchain-based gaming becomes a more common form of entertainment.

The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every investment and trade movement carries a risk. You must do your own research when making a decision.

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