- Axie Infinity witnessed its price declining sharply during overnight sessions.
- Ronin Network lost million amid a massive hack
- Here is why AXS might keep plunging.
Axie Infinity recorded price drops late on Tuesday as market players reacted to Ronin Network exploit. AXS changes hands around the $63 mark, nearly 15% beneath its weekly high. Moreover, the altcoin’s market capitalization plummeted to $6.5 billion.
Axie Infinity (AXS) Hacked
The blockchain market has proven a fast-expanding one. However, cyber security problems remain a challenge within the industry.
DeFi market reported its largest hack on Tuesday. That breach came from the platform hosting Axie Infinity, the Ronin Network. Axie Infinity (AXS) is a decentralized gaming site where gamers use Axies to play. The gaming site uses the Smooth Love Portion token to boost the gaming experience. Meanwhile, AXS serves governance purposes.
The company operating Axie (Sky Mavis) revealed the hacker escaped with crypto worth more than $625 million. That accounted for the largest hack in decentralized finance history. The hacker stole the tokens users deposit for trades within the Axie Infinity network.
Meanwhile, the attacker achieved his goal by sing hacked security keys to fault platform nodes that validate transactions. Sky Mavis’s statement added that they would utilize all available resources to ensure high-end security measures to avoid such occurrences in the future.
AXS Price Forecast
Now, what next for the Axie Infinity network and its native token AXS? It might be early to tell, though the outlook appears grim at the moment. The recent hack might see individuals abandoning the platform for safety reasons. Such developments will mean more price weakness by AXS.
On the other side, the possibility of the attackers cooperating with Axie Infinity remains high. Remember, hackers have returned money in the past. Crypto platforms reward such hackers for identifying weaknesses within their networks. That might explain why AXS didn’t encounter a severe crash.
Meanwhile, AXS’s 4hr chart shows the token created a double-top setup, a bearish formation that means Axie Infinity price might keep dropping in the short term.
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