Ethereum DeFi: AXS reaches $10 million in marketcap, is the fever back?

  • Ethereum-based protocol token AXS (ETH) is launched on Binance Launchpad and receives $10 million in market cap.
  • Delphi Ventures invests $159,000 in AXS protocol with purchase of 5 axies for over 470 ETH.

In the last week, Bitcoin and Ethereum have had a performance that has investors very bullish. The DeFi sector has followed, but its rally seems to have gone unnoticed. In the last week, the Total Value Locked (TVL) in DeFi protocols is near its all-time high with $12.30 billion, as shown by Defipulse data.

Ethereum ETH

pet Source: https://defipulse.com/

As the graph shows, the DeFi sector has had a rebound after falling from its all-time high at the end of October. One of the protocols that has received attention from investors is Axie Infinity and its Axie Infinity Shards (AXS) governance token. Since its launch on the Binance Launchpad, the protocol has received more than $10,000,000 in market capitalization.

As shown by CoinGecko data, AXS trades at $0.13, at the time of publication. The token has had gains of 0.3% in the last 24 hours and is showing a rise. Despite that, its market capitalization has fallen to $7,402,713 with a trading volume in the last 24 hours of $2,797,232.

Ethereum ETH

Source: https://www.coingecko.com/en/coins/axie-infinity

Boom of Ethereum based NFT

Delphi Digital published an entire report justifying their investment in Axie Infinity and exposing the reasons why they feel bullish about Non-Fungible Tokens (NFT). However, they claim that their investment has been studied for years. The firm has been researching the protocol since 2018.

The protocol allows users to play by collecting digital pets. The AXS token allows the community to operate and manage the protocol. In addition, it will allow users to earn rewards for participating in “the Axie universe”. Delphi Digital stated in its report:

Delphi Ventures has invested in Axie Infinity’s upcoming governance token (which we played a big role in designing).

[On October 28th] our team purchased 5 Axies for 473.5 ETH worth ~$159k at that time. Recent market moves may have pushed some to the sidelines but we saw the recent turmoil as an opportunity.

An opportunity to spend a lot of money on digital battle pets. While this may appear to be a confusing impulse buy at first glance, spurred on by the recent hype around NFTs, it’s actually a purchase we’ve been patiently waiting to make ever since we started Delphi.

About Author

Reynaldo Marquez has closely followed the growth of Bitcoin and blockchain technology since 2016. He has since worked as a columnist on crypto coins covering advances, falls and rises in the market, bifurcations and developments. He believes that crypto coins and blockchain technology will have a great positive impact on people's lives.

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