AXS, the native cryptocurrency on the Axie Infinity blockchain game has been on a strong parabolic run since the last week of June and it looks like the bullish momentum is still strong.

ASX is currently one of the top gainers after delivering an impressive 11.76% gain in the last 24 hours, allowing it to recover slightly after its recent bearish pullback in the last few days. The cryptocurrency is currently trading at $42.89 which is notably lower than the all-time high of $53.50 that it achieved on July 27, but still, an impressive price level considering that it was worth as low as $2.85 in June, just a month earlier.

As far as AXS technical are concerned, the selling pressure in the last few days has been decreasing as indicated by the volume, paving way for today’s rally. The selling pressure was likely because of the expectation that the price was oversold and a market correction would take place. However, the price might have some more potential upside given that the RSI suggests it is approaching the oversold region.

Why is AXS rallying?

AXS’ current performance is not only a reflection of the recent bull run in the crypto market but also the rallying demand for the token as a result of the rapidly rising popularity of the Axie Infinity game. The play-to-earn mechanisms of the game have so far made it one of the most appealing games this year. The Pokemon-style game so far manages to attract over 300,000 daily active users, with countries such as the U.S, Venezuela, and the Philippines contributing the highest user numbers.

Axie Infinity’s user base has been growing quickly as new users especially from developing countries jump on board as they look for alternative sources of income. People in such countries do not earn a lot and as such, the ability to make between $500 and $1,000 per month by playing a digital game that has actual rewards that can be exchanged for cash is a huge incentive. The game’s reward mechanics are not the only reason for its popularity. The characters in the game can also be sold or leased out and in-game real estate seems to also be fetching hefty price tags. For example, a piece of the in-game real estate was sold for $1.5 million earlier this year.

Axie Infinity’s popularity also comes from the fact that it is the first blockchain game that has a mechanism that functions properly and rewards gamers. It is also the first game of its type to show how blockchain technology can transform the gaming industry. Those who got in early while the price of AXS was still low have a major advantage given that its price has been going up making it more difficult to afford Axies.

What is the future of AXS?

AXS will likely continue to grow if the Axie Infinity game continues to gain popularity. Right now it is still in its early stages and it might potentially develop into something bigger. There are other likely outcomes but the future of the native token looks good considering its low supply.