WAX (WAXP) Price Prediction

Deep Dive

1. Deflationary Shift via PowerUp (Bullish Impact)

Overview:
WAX is transitioning from inflationary staking rewards to a burn-driven model, with PowerUp transactions now destroying WAXP tokens. Recent tweets (WAX) confirm a 3.9% inflation rate (down from higher historical levels), aiming for net deflation as burns outpace new issuance.

What this means:
Reduced supply could pressure prices upward if demand holds, especially with WAX’s high transaction volume (4.45B daily avg). However, sustained adoption of PowerUp is critical – weak usage could stall deflationary momentum.

2. Web3 Gaming Sector Contraction (Bearish Impact)

Overview:
Q2 2025 saw a 17% drop in blockchain gaming users and 93% YoY funding decline (DappRadar). While WAX leads in transaction volume, its gaming-centric ecosystem faces headwinds as play-to-earn models lose favor.

What this means:
WAXP’s utility depends heavily on gaming activity. Sector consolidation favors chains like opBNB and Aptos, potentially diverting developers from WAX unless it pivots to AI/niche use cases.

3. Technical Battle at Key Levels (Mixed Impact)

Overview:
WAXP faces resistance at the 23.6% Fibonacci level ($0.0216), with the 200-day EMA ($0.0226) acting as a multi-month ceiling. However, the 7-day RSI (57.94) suggests bullish momentum is building.

What this means:
A sustained break above $0.0216 could trigger short-covering toward $0.023. Failure risks a retest of the 30-day SMA ($0.0203), exacerbated by thin liquidity (turnover ratio: 3.59%).

Conclusion

WAXP’s deflationary pivot offers structural upside, but sector turbulence and technical resistance create near-term friction. Watch August’s NFTOPIA 5 Metaverse Convention (Aug 16-17) for gaming adoption signals – can WAX defy the web3 winter?