Newly Launched AXS Token Amass $10 Million Market Cap In One Day

Newly Launched AXS Token Amass $10 Million Market Cap In One Day

A token recently launched by an Ethereum blockchain-based game has taken everyone by surprise after gaining an instant $10 million market capitalization.

With decentralized finance tokens still experiencing a massive decline in the sector, Ethereum and other altcoins are still enjoying their time in the crypto market.

This is no gainsaying after a token launched by a game on the Ethereum blockchain has managed to surprise everyone and gather a market cap of almost $10 million. Fair enough, the game that launched the token was one of the most popular games on the Ethereum blockchain, so this success level was partly expected.

AXS token to act as an in-game medium of exchange

The token, AXS, was launched by Ethereum based Axie Infinity with the renowned crypto exchange, Binance. Built on the Ethereum blockchain, Axie Infinity is a game that allows its players to collect digital tokens. The most integral part of the game is the collection of Axies, which represents the tokens based on Ethereum.

Users are also allowed to use the Axies for in-app purchases and other things. Even though altcoins market sentiment was at a bearish level after the drastic fall suffered by Yearn.Finance, it immediately recorded success when it launched.

In a report submitted by the data analytics website, CoinGecko, the newly launched AXS token traded upward before correcting when the market settled. AXS began trading in the market with a $10 million market cap but has since undergone just a little correction to stay above $7 million.

When the coin was launched, the developers noted that the usage of direct usage of the coin through its community treasury would shape the token’s future. Furthermore, the developers also said that the new AXS token would be used as the official medium of exchange inside the game.

AXS has big backers backing its play

In a move similar to DeFi projects, the developers announced that AXS would be shared among users of its applications. Even though the yields were not stressed, the announcement talked about how the Axie community members will be rewarded with the tokens.

The reward sharing is similar to that of Synthetix as only the core users will earn rewards, while those that use it for liquidity won’t be rewarded. With Ethereum gaming still experiencing massive turnovers, Axie has some big backers backing its play.

The major backer of Axie is presently Binance, as it was the company that launched the token on its launchpad. Another backer worthy of mention is Delphi Digital, a crypto advisory and research firm. Delphi Digital was said to have purchased AXS worth about $150,000 to boost the token’s ecosystem.

The firm is also in charge of designing the AXS token. Axie is currently enjoying the limelight because major players in the DeFi space have shifted from decentralized projects to non-fungible tokens and digital art.