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The price of AXS and SLP increased after the project’s successful migration to the Ethereum network’s Ronin sidechain.
Nonfungible tokens (NFTs) were one of the hottest segments of the cryptocurrency industry from the beginning of the year until March, but as is typical of the crypto business, NFTs cooled dramatically in April as the excitement died down and high fees on the Ethereum (ETH) network disrupted buyers and sellers’ ability to communicate with the protocols.
Because of the high fees, some ventures, such as Axie Infinity (AXS) and Smooth Love Potion (SLP), were forced to move to other networks or accept layer 2 solutions in order to save money. This move, along with a sharp cut in ETH gas fees in the last two weeks, may be a contributing factor to the recent strong rally in AXS and SLP.
Data from and TradingView shows that the price of AXS rallied 83% from a low of $6 on April 25 to a high at $11 on April 29 while the price of SLP skyrocketed more than 1,000% from a low of $0.035 on April 25 to a new record high at $0.396 on May 2.
Several reasons for the recent price growth of AXS and SLP include the migration to the Ronin sidechain for Ethereum, increases in community adoption and a sponsorship from a well known crypto influencer that helped draw new participants to the community.
Shift to Ronin sidechain lowers fees
The most impactful event for AXS and SLP over the past two weeks was the full launch of Ronin phase 2 which required users of the platform to migrate their Axies, which are the in game characters, along with their AXS, SLP and ETH tokens to the Ronin sidechain in order to continue engaging with the protocol.
TIMES UP, LETS DO THIS 🙌
Ronin phase 2 is live!!!
Migrate your Axies for a buttery-smooth experience on Ronin, our Ethereum sidechain!
Finally, we control our own destiny.
— Axie Infinity (@AxieInfinity) April 28, 2021
Ronin is an Ethereum sidechain that was first released in June of 2020 and is primarily designed for the Axie Infinity ecosystem to enable scaling and a more seamless game play interface for a wide number of users.
On April 28, the full migration to Ronin was completed, which was accompanied by a 1,000 percent increase in the price of SLP.
Crypto influencer shines a spotlight on Axie
Axie received a second boost on May 3 with the news that Flying Falcon, a pseudonymous digital landowner and crypto whale, had pledged funds to Yield Guild Games’ “Sponsor-A-Scholar” initiative.
We are proud to announce our new “Sponsor a Scholar” program where benefactors sponsor the SLP to create new @AxieInfinity teams for our player base.@Its_Falcon_Time has generously donated enough SLP to sponsor 50 new scholars into YGG! https://t.co/RHBE4iipUy
— Yield Guild Games (@YieldGuild) May 3, 2021
The change drew attention to the fact that Axie Infinity is more than just a collectable game, but a rising society capable of sustaining its members and delivering a consistent return on invested assets.
The AXS token and the Axie Infinity ecosystem have been gaining traction in the months leading up to the migration to the Ronin sidechain.
AXS and SLP are two NFT tokens that will continue to rally higher, particularly as blockchain gaming becomes a popular form of entertainment, now that the Axie Infinity ecosystem has moved to a lower fee setting and the number of regular active users continues to rise.