In this report, we bring to you the latest in on-chain cryptocurrency analysis. We look at the blockchain directly and analyze balances, transactions, and the overall activity of market participants. This gives us a unique insight into the future of the market.
This section is written in conjunction with IntoTheBlock (ITB). ITB is an intelligence company that leverages machine learning and advanced statistics to extract intelligent signals tailored to crypto-assets. IntoTheBlock tackles one of the hardest problems in crypto: to provide investors with a view of a crypto asset that goes beyond price and volume data.
The Indodax research team uses IntoTheBlock to dig deeper and get the most important insights about the crypto market.
Axie Infinity:
For those that still have not heard about Axie Infinity, it is an online multiplayer video game developed in 2018 by the Vietnamese organization called Sky Mavis. It is a creature-fighting game similar to Pokemon, but their creatures are called Axies and their powers can be traded and exchanged on the blockchain as digital non-fungible tokens (NFTs).
By diving into key indicators from a long-term perspective, we examine the merits of the bullish Scenario for Axie.
Axie (AXS) holders have been increasing non-stop
Total Addresses analytics, data by IntoTheBlock app.
Growth of addresses with balance is a sign that there is an inflow of new holders interested in holding or trading the token. “Total Zero Balance” addresses are a bearish metric that indicates the amount of traders that have sold all of their tokens. It is a positive signal of holding sentiment that the growth of “total with balance” addresses overcomes the increase of “Total Zero Balance” addresses. In simple terms, this means that there are more traders loading up than cashing out. Holder’s sentiment is important but so is how much time the traders of a token are willing to hold their asset. In the case of AXS, the token has usually been held for about 80% of their lifespan. AXS holders have long term faith in the game.
MANA
Aside from Facebook’s rebranding, metaverse-related tokens have been gaining momentum with a few major events. Though metaverse projects are showing promising signs, many of them are showing signs of it still being too early relative to the level of speculation taking place. During the month of November, the number of Mana traders – addresses that hold for less than 30 days, reached a new high with 50,000 addresses.
IntoTheBlock’s MANA ownership stats
During that period:
- 33% of MANA holders bought the token this month; this percentage is even larger for Sandbox (56%) and Gala (43%)
- Spikes in the number of traders point to excessive speculative activity and can often be seen prior to a correction as was with SHIB
While it is true that speculation has faded away, the number of active addresses in Mana has stay relatively constant, following the price action.
IntoTheBlock’s MANA addresses stats
The number of active addresses has increased by 12.55% to an average of 2.44k over the past 7-days. While this correlates with the recent price action, it also reflects an increase in interest in the protocol.
While these projects have large ambitions likely to shape the digital world, it is worth proceeding with caution given the level of speculation and recent price spikes recorded.
