- SLP noticed the most important spike in quantity in 2023 on 9 April
- Nonetheless, SLP’s bullish efficiency was minimize quick in the direction of the top of the week to make means for the bears
SLP staking gained steam on the peak of the earlier bull run however it’s barely talked about, simply as is the case with Axie Infinity. Nonetheless, the latter has been targeted on increasing and remaining related, however what does the long run maintain?
Is your portfolio inexperienced? Take a look at the SLP Revenue Calculator
Earlier than we get into SLP staking, maybe it’s price wanting on the mechanism behind it. That is essential as a result of it provides a deeper understanding of why Easy Love Potion (SLP) is a vital a part of the Axie Infinity ecosystem.
Axie Infinity developed SLP because the token used to breed in-game characters known as Axies. These characters are then used within the sport. In different phrases, the demand for SLP happens when customers must breed in-game characters which have particular traits.
So why is SLP staking essential? Nicely, it is because Axie Infinity ecosystem customers want entry to the SLP token throughout the DeFi setting. SLP was initially solely accessible within the Axie Infinity ecosystem.
Nonetheless, it grew to become extra extensively accessible after it was launched on the Uniswap decentralized trade. Since then it has grow to be accessible on a number of crypto exchanges together with the centralized ones. The implication is that SLP is now extra simply accessible than ever earlier than. Extra so, SLP is now accessible for buying and selling within the retail market which makes it extra risky price-wise.
Is SLP staking nonetheless doable?
Sure, SLP staking continues to be doable on decentralized platforms. It’s because some DeFi platforms require liquidity. As such, SLP holders can stake their tokens on liquidity swimming pools to earn passive revenue.
However, somewhat than taking a look at whether or not SLP staking is feasible, holders of the token ought to contemplate whether or not it’s nonetheless worthwhile. The reply to this query relies upon largely on the extent of demand out there.
SLP staking profitability will depend on the extent of demand for the token within the Axie Infinity ecosystem in addition to the retail market. Sadly, the publicity to the retail buying and selling phase made SLP extra prone to cost volatility. As such, its worth was negatively impacted through the 2022 crypto winter throughout which it misplaced a major chunk of its worth.
SLP’s market cap peaked at $255.4 million in 2021 but it surely skilled important outflows since then. On the time of writing, it had a $91.9 million market cap, thus highlighting the extent of outflows that it has skilled since then.
Supply; Santiment
Regardless of the outflows within the final two years, whales have been accumulating the token. The availability held by prime addresses has been on the rise throughout this era and just lately reached its highest historic stage in April.
The truth that whales have been accumulating SLP throughout crypto winter was signal for any holders involved about its future. As well as, the Axie Infinity ecosystem was nonetheless rising, therefore there’ll nonetheless be demand for SLP, particularly through the subsequent main bull run.
However the actual query is whether or not the Axie Infinity can pull off a double whammy and entice as a lot consideration because it did through the earlier main rally.
SLP’s value motion
Whereas it stays to be seen whether or not we’ll see one other main hype occasion for the Axie Infinity ecosystem, SLP’s efficiency was price noting. For instance, it registered a wholesome in the beginning of 2023, as did most prime cryptocurrencies.
This confirmed that SLP can nonetheless command wholesome bullish volumes. Talking of quantity, SLP’s largest spike within the final three months occurred on 9 April.
Supply: Santiment
At its three-month excessive the amount peaked at 159.95 million SLP. Nonetheless, it has since tanked and the market hovered barely beneath 8 million SLP on the time of writing. However what in regards to the value motion?
Learn SLP’s value prediction for 2023-24
Though SLP pulled off a bullish efficiency in the beginning of the week, its upside was minimize quick in the direction of the top of the week. It has given up a major quantity of its YTD positive aspects and was closing in on its historic low. SLP traded at $0.00216.
Supply: TradingView
The discounted value represented yet one more alternative for anybody trying to get into SLP staking as a result of they will purchase extra. Nonetheless, there’s nonetheless a major diploma of uncertainty concerning its future.
