Categories: Uncategorized

Here’s why you can’t get a discount on a Little Love Potion (SLP)

Just a week ago, Axie Infinity’s AXS token surprised the market by setting new ATHs. That week, however, Small Love Potion (SLP), a token belonging to the same Axie Infinity ecosystem, rose notoriety and rallied on a huge scale.

In fact, this strange token is minted during the game and is a reward for the player. SLP can also be purchased through Uniswap or earned by participating in other similar tournaments. The token is used as currency to breed NFT-based creatures called Axies, which are part of the Axie Infinity world.

This utility token also caught the attention of many people from the Philippines in early May sword Token by playing games to make a living.

SLP saw one of its lowest price points ($ 0.08) in the second half of May, but completely changed its fate in the weeks that followed. In fact, July turned out to be a great time for SLP. The token started the rally on July 1st and has grown steadily since then. At the time of writing, the token ranks 170th on CoinMarketCap and is trading at $ 0.27. Additionally, Small Love Potion has seen a sharp 17% increase over the past 7 days.

In order for the upward trend to continue, on-chain indicators must support the token. At the time of writing, however, not all looks optimistic.

Price (green) and 24h active addresses from SLP (pink) | Source: Santiment

For example, the number of active addresses by the end of April that almost non-existent by the end of April gained importance from May to June, peaking in July (over 16,000 addresses).

At the same time, it would be unfair to ignore the recent decline. At the time of writing, there are only 14.2k active addresses. However, the lower number of addresses won’t be a real problem if it just leads to a rapid drop in prices in the coming days. However, if the decline continues to intensify, the token price could remain within a certain range.

SLP price (green) and network growth (purple) | Source: Santiment

However, SLP’s network growth index paints an interesting picture. Almost 5000 new addresses interact with SLP every day. In fact, the index is still skyrocketing at the time of going to press. Santiment recently in. written down report Mine:

“Looks like a sustained upward move … As long as the SLP continues, it should be fine. You can’t discount SLP when you see this kind of surge. “

SLP price (green) and net loss / profit (purple) | Source: Santiment

To assess the profit aspect, the real loss / profit indicator of the network is useful here. This indicator calculates the average profit or loss of all coins that change address on a daily basis.

This indicator has decreased noticeably in the last few days. The apparent decline began after it peaked at 5.89 million. In fact, at the time of writing, that number is hovering around the 468k region.

“We can see that people are taking more profits than ever before. We only recently started tracking the index, but it’s already pretty high. “

Although very small HODLers (1-10k SLP holders) accumulate tokens, the large HODLers, potentially whales (10k-100k SLP holders), have shown a limited number. There has been some sell-offs and profit-taking in the short term, but it will be interesting to see how price reacts in the long run.

Over the past week, the Axie protocol has generated more fees than all other crypto apps combined. Axie co-founder Jeffrey Jiho Zirlin posted on Twitter to announce the same thing:

This week, the Axie protocol generated more fees than any other crypto application combined.

50% of Axie users are new to crypto.
70% are new to NFTs.

On this planet there are:
• 3 billion players
• 2 billion underemployed people
• 3+ billion pet owners

Further$ axs pic.twitter.com/GrmMfVdSg9

– The Jiho (@Jihoz_Axie) July 10, 2021