Can Axie Infinity [AXS] make a strong comeback in the coming weeks

If you have been re-evaluating your crypto portfolio with a focus on strong fundamentals, chances are you have considered Axie Infinity. It has a solid play-to-earn ecosystem and strong adoption. Its native cryptocurrency AXS has a low circulating supply. But is this enough to ensure a healthy recovery during the next rally?

Axie Infinity was one of the first crypto projects to successfully implement a play-to-earn mechanism. Its approach attracted a lot of users and this contributed to healthy platform growth. Axie’s native cryptocurrency AXS tapped into that growth and enjoyed success which saw it peak at $166. However, strong sell-offs have prevailed since then, pushing it as low as $16.

Crypto maxis might consider the massive price drop as another opportunity to buy at a discount. However, one might wonder whether AXS can still deliver another rally now that the new project hype has already passed.

Is AXS trying to secure its position?

Axie Infinity is leveraging its success in the play-to-earn segment to expand its offerings through a deeper focus on the metaverse. The blockchain project currently has a metaverse project complete with digital land and developments available for purchase. As for the focus on blockchain-based gaming, it recently released its new offering called Origin.

It looks like Axie Infinity is determined to continue building on its initial success and this might be a good sign for the future of AXS. More utility will allow the cryptocurrency to leverage value as the Axie Infinity ecosystem continues growing.

AXS price action has been relatively flat for the last two weeks. The token traded at $21.12 at the time of writing, after an 8.17% decline in the last 24-hours. It experienced a notable volume increase in the last two weeks.

Source: TradingView

AXS’ on-chain whale transaction count metric registered some activity within the last 24 hours of 23 May. This reflected some accumulation by large accounts.

Meanwhile, the supply held by top addresses as a percentage of total supply recently dropped to a 4-week low. However, it also registered a slight uptick between 21 and 22 May.

Source: Santiment

It’s important to note that majority of AXS holders are currently in the red according to the 30-day MVRV ratio. Investors are still concerned about the more potential downside, but it looks like AXS is in good shape for long-term bullish recovery. However, the future remains unwritten and a lot can happen along the way.