Axie Infinity is one of the leading play-to-earn (P2E)crypto games with a high-performing P2E asset, AXS. But recently, the token has plunged below its support range, and as of 13 June 2022, it stands at only $13.20 . According to Coingecko, last year, AXS recorded its all-time high value of $164.90, and now it's gone down by 90%. Besides, [Axie Infinity](/news/article/axie-infinity-coin) price predictions for coming years forecast a declining market.

The reason for its downfall isn’t only the bearish market outlook. Several other factors are at play here - like cyberattacks and the shallow hype for P2E gaming. As an investor, you must be aware of these factors to gauge the potential of AXS. To give you an idea whether Axie Infinity will go up again or not, here are some insights! 

## Axie Infinity Economy

Before making an Axie Infinity price prediction or any investment decision , it is important to learn about how its economy works. Axie Infinity is a blockchain-based game that deals in two digital tokens; Smooth Love Potion (SLP) and Axie Shards (AXS). 

Like most P2E games, it is another idle game of the battle genre. In the beginning, players have to buy Axies to participate in the fights. For winning local fights, you can earn SLP, while tournament games would give you AXS, which is a more valuable token.  

You can also get Axies by breeding them. If you already have two Axies, you can breed them to get another one with abilities of both. In addition, you can also acquire SLP and AXS through crypto exchanges for trading. 

However, the value of both tokens depends on the demand of the Axies in the game. If the demand is low, players can trade their digital assets on different exchanges. This, in turn, negatively impacts the tokens’ price. 
 
![Picture1.png](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/Picture1_a0149b12f9.png)

[Source](https://www.decentralised.co/p/the-economics-behind-axie-infinity?s=r)

## Axie Infinity price prediction 2022, 2025 & 2030

According to DigitalCoinPrice’s Axie Infinity price prediction, at the end of 2022, it doesn’t show much rise and will be averaging $20.52. Moreover, the data indicates that in 2025, AXS's price will only reach $29.48. Comparably, till 2030, the coin does not seem too bullish as its average value in that year will likely be around $70.32. 

In comparison, PricePrediction.net suggests steady growth in the AXS price. By the end of this year, we might see it rise to around $26.71. By the year 2025, the forecast indicates that it will be averaging $88.87. Moreover, the data shows that it will cross its previous highest value in 2027. And by 2030, it will be averaging $556.99. 

## Why the sharp decline in Axie Infinity’s value?

The overall bearish trend in the crypto market can be one of the factors for Axie’s decline. However, there are two other primary reasons for its sharp decline.

1.	Hype for P2E gaming
As a torchbearer of the play-to-earn games, it has fallen short of this claim. The game isn’t quite competitive in terms of gameplay – especially if you compare it to other massively multiplayer online games (aka MMO) battle games. That’s why the player base mainly plays this game with the intention to earn rather than enjoy. 

But the game recently introduced its latest version, Axie: Origin, which doesn’t involve the AXS or SLP tokens. Though they have improved the gameplay and graphics of the game, claiming to cater to the non-crypto gamers, the version has failed to attract the masses. 
Currently, Axie Infinity has around 18,000 active players. This player count has seen a slump from over 70,000 at the start of the year. 

2.	Cyberattacks threatening the ecosystem
Cyber Attacks on the ecosystem are the other reason for a decline in the Axie Infinity price predictions. Last month, cyber attackers hacked the discord server and made a fake announcement for the minting of an Axie NFT.
Before that, on 23 March 2022, Axie Infinity blockchain also experienced grave cyber theft. This caused the blockchain to lose over $600 million worth of USDC and Ether through the Ronin Network. 

Because of these hacking attempts, gamers are becoming more sceptical towards Axie Infinity. Investing in such an ecosystem is quite risky; that’s why investors are hesitant to invest their money. 

## Is Axie Infinity a good investment?

The current Axie Infinity price predictions are in red, and its value is diminishing abruptly. It hasn’t shown any stability lately, which means higher volatility. Moreover, the overhyped P2E mechanism and the cyberattacks on its blockchain make it a risky investment. 

Nonetheless, there are some bullish Axie Infinity price predictions suggested by some analysts, too. If you’re considering investing in AXS, it’s better to conduct your research. Only invest the amount you can afford to lose and take the advice from your financial advisor before making any decision.



Hype & hacking hurdles- Axie Infinity price prediction

Despite the company's significant efforts to obtain clearance, the SEC denied Grayscale Investments' approval to transform its $13.5 billion [Grayscale Bitcoin Trust (GBTC)](https://cointelegraph.com/news/breaking-grayscale-launches-legal-challenge-to-bitcoin-spot-etf-rejection) into a spot-based bitcoin ETF on Wednesday.

The decision follows the SEC's rejection of Bitwise's application for a spot bitcoin ETF on Wednesday.

After a protracted struggle to convince the SEC that the product had enough investor security, the refusal is a blow not only to Grayscale but to the whole cryptocurrency industry.

## The significance of a BTC spot ETF in the U.S. markets

The significance of a Bitcoin based spot ETF being available on the listed U.S. markets cannot be overstated. It would mean that institutional and everyday investors could buy and sell Bitcoin like any other security on the market.

This would give institutional investors more confidence in the market and could help to fuel the next bull run. It would also make it much easier for average people to invest in Bitcoin, which could help further mainstream adoption.

## Why was Grayscale's BTC trust spot ETF approval denied?

Grayscale's BTC Trust Spot ETF application was recently rejected by the SEC. The reason behind the rejection is:

1) The SEC is concerned about Bitcoin's volatility and its potential to cause market instability.
2) The SEC is concerned investors would lack sufficient protections under the Grayscale proposal.

## Grayscale's legal action
 
In October 2021, Grayscale filed to have its Bitcoin Trust known as GBTC, become an ETF, but the decision was repeatedly postponed. Grayscale has increased pressure on the authority to support it, including by providing a means for individuals to email their support immediately.

In a petition, Grayscale promptly challenged the SEC's judgment to the U.S. Court of Appeals for the District of Columbia Circuit. Donald B. Verrilli Jr., a former solicitor general of the United States, is Grayscale's senior legal strategist and is leading a group of lawyers from Davis Polk & Wardwell in this case.

According to Verrilli, the SEC is "failing to apply consistent treatment to similar investment vehicles, and acting arbitrarily and capriciously in violation of the Administrative Procedure Act and Securities Exchange Act of 1934."

SEC Chair Gary Gensler has repeatedly stated that he wants to see greater control of cryptocurrency exchanges before authorising a BTC spot ETF.

The focus of investors and cryptocurrency experts will now shift to what Grayscale can and will do to secure permission for conversion. On June 27, CEO Michael Sonnenshein stated that the business will be "preparing for all possible post-ruling scenarios." On the same day, Grayscale also said that if its application were to be approved, it would work with market makers Virtu Financial and Jane Street to assist in turning GBTC into an ETF.

Stay tuned with [Moni Talks](https://monitalks.io/news) for the latest crypto news.


Grayscale sues SEC for denying BTC ETF approval

eBay announced the acquisition of Manchester-based NFT marketplace [KnownOrigin](https://knownorigin.io/) yesterday. The deal's financial details are unknown. eBay said the purchase was finalised in June 2022.

Andy Gray, David Moore, and James Morgan founded KnownOrigin, a UK marketplace where artists and collectors can make, buy, and resell NFTs. The platform is regarded as one of the best nft marketplaces in the UK.

The purchase will bolster eBay’s position as a leading site as our community adds digital collectibles, said CEO Jamie Iannone. “KnownOrigin has a remarkable, passionate, and dedicated network of artists and collectors, making them a fantastic addition to our seller-buyer community. We welcome these inventors to eBay”.

The deal took place a month after launching its inaugural NFT collection. The new "Genesis" NFT Collection will contain 3D and animated versions of Sports Illustrated cover athletes. eBay's first NFT collaboration was spurred by the collectibles sector.

eBay has a large online retail presence, but it will face stiff competition from crypto-native NFT platforms. Its acquisition of KnownOrigin shows it's serious about entering the NFT space.

“As interest in NFTs grows, we think now is the right time to join eBay. We've spent 25 years establishing enthusiastic communities and are delighted to bring a new audience along. This is a new chapter for KnownOrigin, and we couldn't have picked a better time to work with eBay. This cooperation will attract NFT makers and collectors." Stated co-founder David Moore. The company's latest acquisition expands its blockchain and digital collectibles efforts.

KnownOrigin is the best NFT marketplace because it has a passionate community of artists and collectors, making it a perfect addition to eBay's seller-buyer community. The platform was designed to help creators and collectors promote, sell, and acquire real digital objects. As interest in NFTs continues to grow, KnownOrigin is the perfect place to join the marketplace behemoth. This cooperation will attract NFT makers and collectors from all over the world.

For more developments on the best NFT marketplace go to [Latest Moni](/news)


Ebay Buys KnownOrigin For An Undisclosed Amount

If you're new to the world of cryptocurrency, you may have asked yourself 'what is market cap in crypto?'.

So, lets discover what is market cap in crypto, and what does it mean for a cryptocurrency? In this guide, we'll explain what a market cap is and how it affects cryptocurrency valuations.

## What is Market Cap in Crypto?

What is market capitalisation? In cryptocurrency, market capitalisation (often abbreviated as "market cap") is simply the total value of all coins in circulation. It's calculated by multiplying the total supply of coins [by the current price per coin.](/articles/learn-moni/cryptocurrency-prices)
For example, if there are 100 million ABC coins in circulation and each is trading for $1, then the market cap of ABC would be $100 million.
Why is market capitalisation important? The market cap provides a good way to compare different cryptocurrencies. For example, say there are two coins with identical circulating supply and price.

 However, one coin has a much higher total supply than the other. Which coin do you think would have the larger market cap?

The answer is obvious: the coin with the higher total supply would have a larger market cap. Therefore, when comparing two cryptocurrencies, it's important to consider both circulating supply and total supply.

Market capitalisation is also a good way to assess a particular cryptocurrency's risk/reward ratio. Generally speaking, the higher the market cap, the more stable and less risky the investment. This isn't always true, but it's a good general rule.

## How Do You calculate Market Cap in Crypto?

Cryptocurrencies are often valued according to their market capitalisation, or the total value of all coins in circulation. To calculate market cap, multiply the total supply of coins by the price per coin.
A cryptocurrency's market cap can be influenced by several factors, including the total supply of coins, the price per coin, and public perception.
A cryptocurrency with a low market cap may be seen as more risky or volatile than one with a higher market cap. However, a low market cap can also mean more potential for growth. As such, the market cap is just one factor to consider when evaluating a cryptocurrency.

## Common Methods for Valuing Cryptos

Market cap is one of the most common methods for valuing cryptos and comparing them to each other.
Market cap is a good indicator of a crypto's overall value, but it doesn't tell you everything. For example, it doesn't consider the circulating supply of a coin, which can be misleading. Nevertheless, the market cap is still a helpful metric for valuing and comparing cryptos.

Another common method for valuing cryptos is by looking at the total supply. This metric tells you how many coins there are in existence and what percentage of them are in circulation.

For example, if there are 100 million coins in existence and 50 million of them are in circulation, then the total supply would be 50%. The total supply is a good indicator of a crypto's scarcity and can help determine its value.


What is Market Cap in Crypto?

The Altcoin Season Index tracks whether investor interest points towards altcoins or [Bitcoin](/coins/btc). Normally, if three-quarters of the top 50 coins by market capitalization outperform Bitcoin over the last quarter (3 months or 90 days), the index could be called altseason.

On the other hand, if 75% of the top 50 coins cannot outpace Bitcoin regarding price performance in the last season (90 days), then there is Bitcoin Season.

[Altseason](/news/article/altcoin-season) is when there are more inflows into alternate coins than into the largest digital asset by market capitalisation, BTC.

## Importance of Altcoin Season Index 

Savvy crypto traders and investors use the altcoin season index to make decisions on whether they have to invest in altcoins or inject more money into Bitcoin.

A great example of the relevance of the Altcoin Season Index can be attributed to the current crypto climate, which is the second quarter (April to June) of 2022.

In April, the crypto altcoin season returned as Bitcoin dominance faded. An index of 100 tokens outperformed Bitcoin in March. Investors who wanted to diversify their assets in case Bitcoin plunged to new high lows bought more altcoins. They were not wrong, as the market crash of May led by Do Kwon's Terra project signaled a steep decline in all cryptocurrencies, with Bitcoin taking much of the fall.

In April, May, and June, the top 50 cryptocurrencies - including Ethereum (ETH), Binance Coin (BNB), Cardano (ADA), Ripple (XRP), Solana (SOL), Dogecoin (DOGE), Polkadot (DOT), TRON (TRX), Avalanche (AVAX), Shiba Inu (SHIB), Polygon (MATIC), FTX Token (FTT), Litecoin (LTC), Chainlink (LINK), Stellar (XLM), Uniswap (UNI), and Bitcoin Cash (BCH) - have not outperformed Bitcoin.

Although BTC has reached the same price levels as 2020, collectively, these cryptocurrencies and others have shed more in market value. Therefore, we can say that we are in Bitcoin Season and not altseason.
It is not surprising to see trader interest reflected in the liquidity of Bitcoin. Though much of this is related to huge selling due to the bearish trends of the market, high investor interest relative to a low-priced asset is a sign of positive reserve risk.

## How does Altcoin Season Index Relate to Bitcoin Fear and Greed Index?

Bitcoin [Fear and Greed Index](https://edition.cnn.com/markets/fear-and-greed) and Altcoin Season Index rely on BTC to make conclusions about crypto seasons.

Bitcoin Fear and Greed Index presents a bull market when the index is closer to 100 (greed) and a bearish market when the index is closer to 0 (fear). The performance of altcoins is measured against that of Bitcoin.

In conclusion, while we are not in an altcoin season in June, there is fear in the market concerning holding Bitcoin.


What is Altcoin Season Index?

Recent Coinbase [news about lay-offs](https://edition.cnn.com/2022/06/14/investing/coinbase-layoffs-bitcoin-crypto/index.html) came as no surprise and confirmed the fact that even the most prominent players can go through a panic attack enhanced by the current happenings within the cryptocurrency industry.

Brian Armstrong, the CEO of the cryptocurrency exchange Coinbase, confirmed laying off over 1,000 employees, warning of an imminent recession and “crypto winter”. 
In his note, Armstrong confirmed the company went on an unnecessary hiring spree during the recent price boom in this sector. 

“We grew too quickly. While we tried our best to get this just right, in this case it is now clear to me that we over-hired,” he admitted.

Armstrong also asserted he did hold numerous talks with the company’s management during the last few days and that they decided that laying off was the only possible decision. 

“We appear to be entering a recession after a 10+ year economic boom. A recession could lead to another crypto winter and could last for an extended period,” Armstrong wrote in the note to employees, adding that due to quadruple growth in the last 18 months, the company’s employee costs became “too high" to manage this uncertain market effectively.

Laid-off employees were promised a minimum of 14 weeks of compensation, four months of health insurance, including four months of mental health support, and access to Talent Hub, where they can access other open positions at other companies.

The situation escalated after the now-infamous digital lending platform [Celsius Network halted all of its operations](/news/article/celsius-crypto-freezes-withdrawals), including withdrawals, swaps, and transfers.
According to the last information, Celsius reportedly hired restructuring lawyers to advise on possible solutions to its bumpy financial situation.

## Other Crypto Companies Struggle

During the last few days, some other companies within the industry also have resorted to layoffs. One of the biggest exchanges Gemini laid around 10% of its workforce earlier in June, while banking app Curve fired around 100 employees after it reported an operating loss of £37.9 million. Cryptocurrency exchange and wallet BlockFi also confirmed firing approximately 20% of its workforce due to “the challenging market environment”.

On the other hand, Binance CEO Changpeng Zhao stated a potential forthcoming crisis could actually be good for business.

“It’s not the first time we’ve gone through a crypto winter. If we are in a crypto winter, it would be my third and Binance's second. So it's not the first time we’ve been through this,” CZ said.

He added that his company plans to hire more people since “during bull markets, everyone is starting their own projects, and everyone is getting paid a ridiculous amount of compensation. Now the markets are more balanced, so top talents are available, and we want to hire them,” he concluded.

Coinbase, which went public last year with share prices hovering around the $350 mark, has lost its momentum and was trading at nearly $49 per share pre-market at the time of writing.


Latest Moni

Crypto Market News

Read the latest Crypto Market news.

Hype & hacking hurdles- Axie Infinity price prediction

Grayscale sues SEC for denying BTC ETF approval

Ebay Buys KnownOrigin For An Undisclosed Amount

What is Market Cap in Crypto?

What is Altcoin Season Index?

Coinbase News: Over 1,000 Employees Laid Off

Zipmex Gets 3-Month Creditor Protection

Reddit Crypto Exchange Partnership with FTX

Polkadot blockchain and altcoin explained