Small Love Potion doing its job

Assets covered: Small Love Potion (SLP)

Metrics used: Active Addresses, Network Growth, Daily Active Deposits, Network Profit Loss, Holders Distribution

Charts layout:

SLP, a "Smooth Love Potion", what a romantic name for a token.

Well, Coinmarketcap insists it's "Small", not "Smooth", doesn't matter.

This token is one of few breaking all time highs lately.

It's onchain data is absolutely ridiculous!

We'd love to share this.

First of all, what is SLP? It's an uncapped utility token that is used to breed new Axies. It can be either mined through playing Axie Infinity, bought via Uniswap, or earned by participating in various promotions or tournaments. Small Love Potions are required in the breeding of two Axies, in which the the spent SLP will be burned and be replaced with a new Axie.

Long story short, Axies are breeding only using Small Love Potion.

Another interesting fact is that farming SLP by spending hours and days in Axie Infinity is a well known way of earning some daily income in economically poor regions.

Now what do we see onchain.

1. Active Addresses

Source: Sanbase

Oh, what a strong trend! SLP active addresses has been growing strong for 15 days. The activity is freaking ridiculous.

2. Network Growth

Source: Sanbase

Wow. Five thousands new addresses interacting with this altcoin every day?! And it's not a one time spike as earlier. Looks like a sustainable rise.

As long as this continues SLP should probably be ok. You can't really be all that bearish about SLP when you see this type of a rise.

These two already paint enough of a picture.

Obviously there are warning factors, even with this type of activity.

3. Daily Active Deposits

Source: Sanbase

This metric is also growing. Since spikes may indicate a rise in short-term sell pressure, the question is how many people are going to start taking profits because they are afraid of a correction when we hit a new ATH.

4. Network Profit Loss

Source: Sanbase

We can see that people are taking profits, more than ever. We've only started tracking this metric just recently but it's already quite high.

5. Distribution of large holders

1 to 10k SLP are very small holders and are just accumulating until they very end it seems. Source: Sanbase
10k - 100k SLP showing some decline, may be whales most likely. Because next bigger group is quite small, 43 addresses, so falling back to 10k-100k. Source: Sanbase

Looking at the whales group, we started recovery around 27th of May and the price started recovery as well. The problem is the last drop. There's been some profit taking, but then the chart started to move back. People like "ok, this is not the actual top, there's more, alright I'll go more..."

Everybody else is just accumulating.


SLP onchain activity is amazing. As long as this continues Small Love Potion should probably be ok. You can't really be all that bearish about SLP when you see this type of a rise.

These two already paint enough of a picture.

Disclaimer: The opinions expressed in the post are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.

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