Tough week in crypto hits Axie Infinity, Fantom and Quant Tokens hard

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What happened

Axie Infinity (CRYPTO:AXS), Fantom (CRYPTO:FTM) and Quant (CRYPTO:QNT) are three promising altcoin projects that many investors have on their radars. Over the past year, each of these tokens has seen massive runs, followed by downward volatility. This week, the downward momentum continues for these tokens, with declines of 15.1%, 13.7%, and 10.5%, respectively, noted on Axie Infinity, Fantom, and Quant since last Friday’s close. , at 12:30 p.m. ET.

Various macro issues have hit each of these cryptocurrencies, and the entire crypto market for that matter, hard over the past week. Investors continue to digest what higher interest rates could mean for capital flows into higher-risk assets. Additionally, concerns over a proposed Russian crypto ban and the potential for central bank digital currencies continued this week.

Image source: Getty Images.

However, there were other drivers taking those tokens lower.

For Axie Infinity, yesterday’s launch of a new RON token from Axie Infinity founder Sky Mavis went well. This RON token is a governance token for Axie Infinity’s new Ronin sidechain. However, today this token is down over 25% at 12:30 p.m. ET. The move suggests that investors may be less enticed by Axie Infinity’s move to an Ethereum sidechain than previously thought.

Fantom and Quant, the fast-growing altcoins that power networks supporting the growth of decentralized financial applications and interoperability, are also down double digits. Investors seem to be turning to more stable, large-cap cryptocurrencies, given scaling issues among other altcoins in recent weeks.

So what

The rather gloomy performances this week for Axie Infinity, Fantom and Quant are remarkable. Indeed, these three projects have been very attractive to growth investors in recent months. User growth in the metaverse and other high-growth networks has provided what has so far proven to be a very positive catalyst for investors.

However, valuations are now the talking point of all investors, with rising interest rates changing the risk paradigm in markets. These top altcoins can still be highly valued by early adopters. However, the short-term outlook for these cryptos suggests that those who bought recently might rethink their investment.

Now what

From profit taking by early investors to panic selling by recent investors, these three tokens remain under pressure. While today’s price action on these tokens was muted, the weekly moves of Axie, Fantom, and Quant were some of the most bearish in the market over this period.

It will probably be a token picker market from here. As a result, it will be interesting to see if investors recoup these tokens on this dip or if this selloff continues. For now, I will be monitoring these sideline cryptos. This volatility looks set to continue for some time.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a high-end advice service Motley Fool. We are heterogeneous! Challenging an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and wealthier.

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