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While DeFi coins are plummeting into the ground, there still appears to be money flowing into the Ethereum and altcoin markets. A token launched today managed to raise a market cap of $ 10 million almost instantly.
To be fair, however, the token that was launched was for one of the most well-known and successful Ethereum-based applications.
Axie Infinity, based in Ethereum, launches the AXS token with immediate success
On the morning of November 4, Binance helped the Axie Infinity team launch its governance token, AXS. Axie Infinity is an Ethereum-based digital collectible and gaming application. A crucial part of the game is the collection and use of Axies, digital creatures represented through Ethereum-based tokens.
AXS was an instant hit, although market sentiment around the altcoins is largely bearish, evidenced by Yearn.finance which fell to four digits after hitting a high of $ 44,000 two months ago.
According to CoinGecko, AXS began trading around $ 10 million in market cap, although the coin has since corrected to $ 7.3 million in market cap as the market stabilized.
Holders of this new Ethereum-based coin “will shape Axie’s future by signaling their support for governance proposals and directing the use of a community treasury,” according to a launch announcement. AXS will also be used as a medium of exchange within the game.
Similar to other DeFi or DeFi products, AXS will be distributed to application users.
The announcement specifically mentions how those who “add value” to the Axie ecosystem will be able to earn these tokens, although the returns provided are not yet clear.
The distribution appears to be similar to that of Synthetix, where those who actually use the product get the tokens instead of those who deposit cash in an often useless pool.
Big supporters
While Ethereum-based games and collectibles may still seem like a niche market, Axie Infinity has some notable supporters.
First, Binance Launchpad listed it as above. Exchange vets projects distributed via Launchpad.
Delphi Digital, the leading cryptocurrency consultancy and research firm, has also backed Axie Infinity. As noted by Ethereum users, the company recently bought Axies for over $ 150,000, presumably as a long-term bet on the ecosystem. Delphi is also responsible for helping the Axie Infinity team design the AXS token.
The recent strength Axie Infinity has seen appears to be related to a shift in focus from purely decentralized finance projects to those involved in non-fungible tokens (NFTs) and digital art.
Essentially, Axies are NFTs. With NFTs selling for tens of thousands of dollars and artists like 3Lau involved, it’s clear why Axie Infinity is seeing such a surge in interest.
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