New 'Axie Infinity' Ethereum Gaming Token to Be Airdropped to AXS Stakers

Axie Infinity is set to launch a new non-transferable token called bAXS, pegged 1:1 to AXS, in an effort to combat inflationary rewards within its ecosystem. The token will be airdropped in two rounds to eligible AXS stakers. The first airdrop requires staking at least 10 AXS by 00:01 UTC on February 5 according to blockchain data.

The bAXS token will function within the Axie economy in the same way as AXS, allowing players to upgrade and evolve their axies, and use it on the secondary marketplace. However, it will be specifically designed to encourage in-game utility over speculative trading.

AXS has seen a significant price increase recently, rising from about $1 at the start of the year to $1.62. Despite this, it remains far below its 2021 all-time high of $164.90 according to price data.

Why the Move Happened

Axie Infinity's bAXS token is intended to stabilize the AXS economy by reducing speculative trading and encouraging in-game utility. Sky Mavis co-founder Jeffrey Zirlin explained that part of the game's core mechanics now requires AXS to power upgrades. This will increase demand for both AXS and bAXS as players seek to enhance their axies as reported by Decrypt.

The new token also supports the upcoming release of Terrariums, a land-based game where players can earn through mini-games and guilds. Zirlin expects this to drive additional usage within the ecosystem.

How the Market Reacted

AXS has experienced a 57% price increase over the last 30 days, reaching $1.55. However, the price has recently corrected by about 35% in the last week, following a peak of $2.92 in late January.

The bAXS airdrop comes after a period of volatility for AXS, with the token still down 99% from its 2021 peak. This volatility reflects the broader challenges faced by blockchain gaming tokens in recent years.

What Analysts Are Watching

Analysts are monitoring how the bAXS airdrop and the launch of Terrariums will impact AXS's utility and price. The success of the new token will depend on its adoption within the Axie ecosystem and how it supports the game's evolving features according to market analysis.

Sky Mavis has also announced the upcoming release of Axie Infinity: Atia's Legacy, a new MMO game, which could further drive demand for AXS and bAXS.

Investors are also watching how the broader crypto market responds to Axie's new token and the potential for increased utility within its ecosystem.