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Play to earn tokens took another beating over the weekend, as market sentiment sank. But this category also relies on game usage, with some hopes of recovery coming faster for some of the projects.
WAX (WAXP), the fastest, custom-built blockchain, is also facing similar difficulties with price action. WAXP traded at $0.41, further sliding from last year’s peak close to $1.
WAXP Price Prediction: Low Liquidity Conditions Affect Price
WAXP is a token with very high on-chain activity. But its liquidity profile means significant slippage is possible. WAXP depends on its Binance trading pair for 20% of all volumes, and price discovery is happening on relatively illiquid market conditions.
WAXP has more than $22M in trading volumes in the past 24 hours, but on the selling side, even $100,000 can lead to 2% price slippage. WAXP may then be toppled by even a small imbalance from the seller’s side.
WAXP Price Prediction: $1 Still Possible?
WAXP has shown it rallies close to $1 during a bull market, as it happened in 2021. WAXP has also survived multiple periods of stagnation, while still supporting the in-game economy it was created for.
WAXP also has significant upside for a breakout, with some technical expectations of regaining previous price tiers.
WAXP Price Prediction: Building and Project Launches Continue
The WAX blockchain continues to attract NFT collections, which can turn into the initial stages of play to earn games. The Blockchain Heroes game is up and coming this January 21:
Other NFT drops are available for WAX account and wallet owners.
WAXP Extreme Predictions: Can This Coin Reach $5
In the coming year, there are some expectations for a continued bull market, as crypto assets are already more liquid and there is less risk of a total market withdrawal. WAXP at around $0.40 is seen at support levels, possibly abandoning its lows.
More extreme price predictions see WAXP reach valuations as high as $5, based on the success of other play to earn tokens.
These are only the most extreme predictions, and in the short term, WAXP remains potentially illiquid and volatile.
The WAX network is also showing signs of significant NFT trades, commanding high prices. At this point, it is difficult to estimate if the trading is organic, or if the items are being bought and sold in a concerted way to drive up prices.