Smooth Love Potion (SLP) broke out spectacularly after a long period of stagnation, despite expectations of a continued price drop. SLP achieved a feat of rising by 251% in a single day, to secure a new stable position at around $0.03. At one point, SLP expanded to $0.04.
The recovery arrives just days after Axie Infinity promised to cut PvE rewards to encourage real person-to-person gameplay. SLP also finds support from the potential for Axie Season 20 to launch soon. SLP is headed for a successful week of price jumps, as it started off from just $0.01.
SLP already lines up among top gainers in cryptocurrency trading, as well as among the most active assets for Southeast Asia.
The recovery of SLP means immediate higher income for players, scholars and sponsors. But it will also mean a steeper fee to breed Axie characters, which will chip into the oversupply. Additionally, in new game tournaments, Axis will be retired in exchange for other items or land plots.
How Risky is SLP
SLP is the reward token, meaning it can get sold in large numbers. The asset has a significant backlog of minted tokens, which even the most liquid markets may not be able to absorb. Binance, where SLP is among the top 5 traded assets during the recent pump, can absorb $1.7M in sales for 2% slippage. With billions of SLP, the price can easily return to previous lows.
The recent price rally may also be a pump focusing on Binance trading pairs, meaning the growth of SLP is not entirely organic.
Axie Infinity Shards (AXS), the voting and staking token, is relatively stable at $64.09, after regaining its positions from lows under $50 in the past week. RON, the native token of the Ronin network, is still in price discovery after a few weeks of trading. RON recovered from lows of $2 and was up to $3.32.