Axie Infinity [AXS] Slips in User Attraction: Is It Undervalued?

• The blockchain-gaming ecosystem Axie Infinity [AXS] was finding it hard to attract users to its decentralized applications (dApps).
• Transactions and volume were down 11.32% and 30%, respectively.
• Despite the asset being potentially undervalued, whale interest had reached extreme ground level.

Axie Infinity Struggles To Attract Users

The blockchain-gaming ecosystem Axie Infinity [AXS] was finding it hard to attract users to its decentralized applications (dApps). According to DappRadar, the traction was impressive at some point in the first week of February 2023, leading the 30-day performance to a 233% volume hike. However, the last seven days have been rocky for the AXS ecosystem; transactions were down 11.32%, and volume decreased to $18.94 million—a 30% decrease within the said time frame. Moreover, Unique Active Wallets (UAW) fell to 44,370; this key metric revealed the dApp with the most user interaction had fallen off rankings as compared to other projects such as PancakeSwap [CAKE], Alien Worlds, and Uniswap [UNI].

Declining Monthly Accounts

Moreover, monthly new accounts created on Axie Infinity’s ecosystem could not recover significantly since it began a Month-on-Month (MoM) downward trend in October 2021 according to Dune Analytics. This decline aligned with earlier notions that monthly usage and transacting addresses fell short of expectations.

Market Value To Realized Value

On a somewhat positive note, Santiment noted that the AXS Market Value to Realized Value (MVRV) z-score was down to -3.48. The metric gauges the state of an asset’s market capitalization and realized capitalization in order to evaluate whether it is undervalued or overvalued at its current price. Since MVRV z-score trended lower than its 8 February position, it implied that AXS was likely undervalued at its current price; however, whale interest in the token had also reached extreme ground level with supply held by whales sitting at 93%.


In conclusion, although Axie Infinity’s token may be undervalued according to MVRV z-score metrics, whales seemed uninterested due its lack of user attraction caused by declining monthly accounts numbers and low transaction volumes. As such, AXS has become left behind from other popular gaming projects in crypto ecosystems experiencing a revival recently such as PancakeSwap [CAKE], Alien Worlds, and Uniswap [UNI].

Future Prospects

It remains unclear if Axie Infinity will ever manage to regain traction among users or if it faces an irreversible decline; only time will tell what will happen next for this blockchain gaming project.