Axie Infinity pumps 24% in 24 hours; Why is AXS rising?

As the cryptocurrency market finally flashes some green after weeks of uncertainty following the FTX implosion, some of its assets are recording better gains than others, including the blockchain gaming token Axie Infinity (AXS).

Short for Axie Infinity Shards, AXS is recording double-digit gains on its daily chart, with its price growing by 23.83% across the previous 24 hours, at press time trading at $8.39, according to CoinMarketCap data retrieved by Finbold on December 5.

On top of that, Axie is registering double-digit gains on its weekly chart as well, where it has increased by 29.45% over the previous seven days, as the digital asset aims to recover from its accumulated monthly losses of 22.31%.

At the same time, the decentralized finance (DeFi) token is recording a massive increase in trading volume as crypto traders flock to take advantage of the volatility from the previous weeks to gain some returns on their investments.

On top of that, AXS’s market capitalization has received an inflow of $131.33 million in one day, currently amounting to $806.86 million, which is an increase of 16.28% compared to 24 hours before.

What is behind the price jump?

The increases in price and the trading volume for AXS arrive just as Axie Infinity announced its ‘Axie Contributor Initiative’ – the advancement of its progressive decentralization strategy with the Axie community, which includes establishing an ‘Urban Planning’ team, community councils, decentralizing community treasury governance, and more.

As shared by one of the 600 community members taking part in this initiative:

That said, AXS has had a difficult year, as the general bearish market sentiment and wider macroeconomic factors exerted downward or, at best, sideways pressure on the metaverse-focused cryptocurrency, which has declined a whopping 91% since January 1, when it traded at $93.3.

However, the recent initiative that has led to the uptick in the token’s trading and its price could provide the much-needed impetus for a brighter new year for Axie Infinity’s native token.

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