Cryptocurrency token axs has seen a remarkable rally in the last two weeks, with its price increasing by 80%. over the last 24 hours, the token has increased its price by 21%, currently trading at $12.35 according to data from coingecko. this rally was driven by traders and holders of the token, as well as by the unlocking of vested tokens.
Unlocking of vested tokens occurred today, with the largest share of the tokens being distributed as staking rewards (29%), followed by the team (21%). analyst priyansh patel from delphi research noted that in the weeks leading up to the axs unlock, the token had been significantly underperforming the rest of the market. this unlocking event is smaller than previous events in november and the upcoming unlock in may.
Increase in price was caused by traders opening positions on the token without owning it outright, followed by the unwinding of the short leg of the hedge. this pushed the price of axs up, causing speculative traders with uncovered short positions to close, leading to a price crunch. aggregate open interest for the axie infinity (axs) governance token has been growing, indicating more derivative traders are entering the market, although some have recently sold their token, causing a 1.3% drop in the past hour.