Why Is Axie Infinity So Cheap?

Last Updated January 27th 2022

7 Min Read

Will Axie Infinity token prices bounce back, and what will AXS be worth by the end of 2022?

Well, of the many factors pushing down the price of Axie Infinity token, a crashing crypto market has played the biggest role. It started with the surprise festive season sell-off in December 2021 that paused Axie Infinity’s November 2021 rally. This was closely followed by the January market-wide crash that saw Axie Infinity shed more than 70% of its November peak price.

Note, however, that by describing Axie Infinity’s current price as cheap, we don’t mean that it is of poor value. After all, the ERC token is ranked as the 39th most valuable cryptocurrency by CoinMarketCap and currently has a live market cap exceeding $3 Billion. We are simply stating that it is undervalued and that both its technicals and fundamentals indicate that it could and should be doing better.

Moving forward, analysts and investors are confident that Axie Infinity token prices will bounce back and proceed to set new price records.

In this guide, we will be telling you when experts believe AXS will rebound, how high they expect Axie Infinity prices to reach, and expanding on more factors that may have contributed to its low per token valuation.

First, though, we look at its past price action and how it brought it to what these analysts consider to be a cheap price.

Axie Infinity (AXS) Price History From 2020 to 2022

Axie Infinity has a history of low per-token valuation, which started during its ICO when one AXS token was sold to institutional investors and regular traders for $0.8 and $0.1, respectively. The low price curse then followed it in the open markets when it ended its first day of trading, selling for $0.15.

However, throughout 2021 and with the assistance of a rallying crypto market and innovative developments within the Axie Infinity ecosystem, it had taken significant measures at escaping this low valuation. In its first 12 months of operation, for instance, Axie Infinity grew its value 1100X to set the current all-time high of $165.

By the time it was hitting this peak, the majority of analysts and investors predicted that a sustained rally would take it above $1000 by the end of 2022. This uptrend was, however, arrested by a surprise sell-off in December and crashed by the crypto market price crash in January.

At the time of writing, AXS has lost more than 70% of its peak value, and there is no telling when the Bitcoin-inspired downtrend will reverse for AXS to resume its late 2021 price run.

Why Is Axie Infinity (AXS) So Cheap?

There are multiple possible explanations as to why Axie Infinity token price is so cheap by this much in a short period of time. The most obvious has to be its overreliance on the crypto market to influence its direction. This explains why AXS token prices fell by yet another 70% when the market first crashed in mid-May 2021.

The overdependence on the market, and especially Bitcoin’s price, to influence its next price move meant that Axie Infinity price crash was inevitable when HODLers started liquidating their positions en-masse in December 2021 and the better part of January 2022.

Other possible explanations to why Axie Infinity may be selling for cheap today include:

Relatively new and in price discovery: You may also argue that AXS is cheap because it is relatively new and, therefore, still in price discovery mode. It is yet to find its intrinsic value. This makes it vulnerable to even the slightest market scares. In an ongoing market crash, for instance, not even its growing number of daily active users or innovative developments on the Axie Infinity ecosystem could save it from downtrending BTC prices.
Low demand: Axie Infinity token prices could also be trading at relatively low prices because of its limited use cases that then explain its low demand. Put simply, the demand for the token wasn’t strong enough to help counter the Bitcoin-inspired falling token prices.
High maximum supply: Axie Infinity could also be cheap because its bloated supply of 270 million tokens has placed a limit on just how high its prices can reach. It is not uncommon for altcoins with an enormous supply to have a hard time growing their token prices past a certain market cap, a perfect example being Cardano, which has had the toughest time escaping the $2 price level.

Check Out: Is Axie Infinity A Good Investment?

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Should I Buy Axie Infinity (AXS) While It Is Still Cheap?

Yes, you may consider taking advantage of the current dip and buy Axie Infinity while they are lowly priced because their price is expected to bounce back and rally to higher price levels. As was the case with the mid-2021 dip and numerous others before it, cryptocurrencies will most definitely escape this dip and climb to new highs.

The only downside to betting on this theorem is that no one knows when AXS token prices will rebound or how high they will get.

Technical analysts at CryptocurrencyPricePrediction are, however, convinced that Axie Infinity will most likely rebound and rally to $1160 by 2025 and $3270 by 2030.

What impact does this have on your investment?

To answer this, we will start by assuming that you just bought Axie Infinity tokens worth $1000. If the analysis by this forecaster is accurate and AXS token prices reach $1160 in December 2025, you will have grown your investment by 2320% to reach $23,200. And if you HODL further and AXS appreciates by 6540% to reach $3270 in 2030, you would have grown your $1K investment to $65,400.

Is Axie Infinity (AXS) Worth Buying?

Yes, Axie Infinity tokens are worth buying today because the crypto asset has proven to be a reliable long-term investment. Fundamental and technical analysts and even AXS investors are all confident that AXS token prices will continue rising in the foreseeable future.

They base their optimism on the fact that Axie Infinity has sustained an uptrend since its launch. They also argue that AXS is massively resilient after observing the ease with which the altcoin overcame what most consider to be the most volatile crypto market crash yet in mid-2021.

Other factors that these analysts believe make AXS worth buying because they will help catapult the altcoin to new heights include a recovering crypto market, upgrades and addition of new projects to the Axie Infinity ecosystem, as well as growing daily active user numbers and popularity of the Axie Infinity game.

Will Axie Infinity (AXS) Bounce Back?

The overwhelming conviction among traders in the crypto market is that Axie Infinity token prices will bounce back, rise above the current all-time high, and proceed to set new price records. The majority are especially convinced that AXS has all it needs to rebound and resume the late 2021 market rally by the end of 2022.

Let us look at when different analysts expect AXS token prices to bounce back and how high they expect the altcoin to reach:

The all popular technical analysis platform, Wallet Investor, indicates that the AXS token’s recovery will be rather slow. It expects AXS to bounce back in the last half of the year and grow its value by 375% to reach $188 at the end of 2022.

Experts at Coinquora are equally optimistic about the gaming token’s ability to recover, arguing that it could likely bounce back by mid-2022. By the end of the year, they expect AXS to have grown its current market price by more than 500% to reach $250.

At RippleCoinNews, crypto experts argue that AXS may have hit the support level and is now prepping for an ecstatic upswing that helps it grow its current value by more than 680% to reach $340 by the end of the year.

The machine learning and technical analysis platform, Gov Capital, is even more optimistic and indicates that AXS will have a swift rebound that takes it above the current ATH by May 2022. By the end of the year, this analysis indicates that AXS will most likely be trading above $400.

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Conclusion: Why Is Axie Infinity (AXS) So Cheap?

Axie Infinity token is primarily cheap today because of the ongoing downtrend in the crypto market. Analysts have also observed that it could also be cheap because of its limited use case that caps its demand because it has a high maximum token supply, and possibly because it is new and still in price discovery.

Nevertheless, the majority of analysts and investors are confident that AXS token prices will bounce back, rise above the November 2021 all-time high, and set new price records by the end of 2022. The few forecasts that we have interacted with, for instance, expect AXS to end the year trading between $200 and $400.