Last week Axie Infinity's AXS token went on an impressive parabolic run and hit a new all-time high at $19.60.
Small Love Potion (SLP), a token in the Axie Infinity (AXS) ecosystem that is minted through gameplay as a reward to users, also broke out with a triple digit gain. SLP can then be used as a currency to breed Axies, which are nonfungible token-based creatures that populate the Axie Infinity world.
Data from Cointelegraph Markets Pro and TradingView shows that the price of SLP has surged 102% from $0.127 on July 1 to a weekly high at $0.257 as new users flood into the play-to-earn digital battle pet game and drive the revenue of the Axie Infinity ecosystem to new highs.
New users drive up demand for Axie breeding
The success of SLP depends in large part on the overall growth and adoption of Axie Infinity, which has seen a significant uptick in new users since the protocol migrated to the Ronin sidechain of the Ethereum network at the beginning of May.
A recent report from Delphi Digital highlighted that interest in the Axie ecosystem has grown at an “exponential rate since the launch of Ronin,” with the biggest growth seen in the Phillippines, Venezuela, Cuba, Qatar and the United Arab Emirates (UAE) beginning near the end of April.
The increase in interest has led to an influx of new users over the past two months as evidenced by the growth in daily active users, unique Axie holders and the number of Discord members.
Bitcoin (BTC) has never been as far below its target price as it is now, the stock-to-flow model shows this week. In a tweet on July 10, Lex Moskovski, chief investment officer at Moskovski Capital, showed stock-to-flow flagging a historic moment in Bitcoin's twelve-year lifetime.
"Great buying opportunity"
With BTC/USD showing few signs of a genuine bullish recovery, the pair has been drifting ever further from the price that the stock-to-flow price model calculates it should have. Stock-to-flow is arguably the most popular of the Bitcoin forecasters, and has historically tracked BTC price action with surprising accuracy, taking every anomaly into account to remain valid.
As Cointelegraph reported, however, current behavior is giving stock-to-flow a run for its money, and as of now, its target price comparatively has never been so far from reality.
"Negative Stock-To-Flow deflection is the highest it's ever been in the whole Bitcoin history," Moskovski commented.
This Daily Dose was brought to you by Cointelegraph.