Axie Infinity (AXS) Explodes: +120% in 7 Days! Here's Why
Axie Infinity (AXS) has just delivered one of the most explosive rallies in the GameFi sector, surging from around $0.78 to over $2.00 in just one week - a mind-blowing 120%+ gain that has crypto traders scrambling to understand what's driving this comeback.
The Numbers Don't Lie
Current Price: ~$1.99 (as of January 20, 2026)
7-Day Gain: +120.53%
24h Volume: $42.02M USDT
Market Sentiment: Bullish momentum across all timeframes
After hitting a 4-year low at $0.78 in late December 2025, AXS has staged a remarkable recovery that's outperforming the entire crypto market.
What's Fueling This Epic Rally?
Game changing Tokenomics: SLP Emissions Halted
On January 7, 2026, Axie Infinity made a bold move by disabling Smooth Love Potion (SLP) token rewards in Origins mode. This single decision:
Cut daily token emissions by approximately 90%
Eliminated automated farm and dump bot activity
Dramatically reduced sell pressure on the ecosystem
Created immediate scarcity dynamics
This is similar to Bitcoin's halving events when supply gets cut while demand remains steady or increases, prices tend to surge.
Introduction of bAXS: The New App Token
Axie Infinity launched bAXS, a revolutionary account-bound in-game currency that can be:
Staked for rewards
Spent directly in Axie Core
Sold internally (reducing external sell pressure)
Unlike traditional gaming tokens that create constant selling pressure, bAXS is designed to keep value circulating within the ecosystem. Analysts consider this a major strategic evolution for GameFi economics.
GameFi Sector Rotation
The broader crypto market is experiencing a capital rotation into gaming tokens, with AXS positioned as a high conviction bet. Key metrics show
Futures open interest surged 180%
Spot trading volume hit $380M a staggering 1,600% spike
GameFi tokens leading altcoin rallies due to their high beta
Technical Breakout After 4 year Accumulation
From a technical perspective, AXS broke out of a multi-month descending channel:
RSI (14) Currently at 66, with room to run before overbought
MACD Recently marked a bullish crossover with expanding histogram
Key Support: $1.20 level holding strong
Next Targets: $1.50 resistance, followed by $2.25
- Strong Community Engagement
Current staking rate: 62% of circulating supply
Trading volume confirms strong buyer conviction
Community sentiment overwhelmingly bullish
What This Means for Investors
Axie Infinity's rally represents more than just a price pump it's a fundamental shift in GameFi tokenomics. The team is addressing the core issues that plagued early play-to-earn models:
Bullish Factors
Reduced inflation through SLP halt
Improved token utility with bAXS
Strong developer activity and ecosystem updates
Potential for 200%+ gains if resistance at $1.50 breaks
Risk Factors:
Still trading 98% below all-time high of $165
Profit-taking could trigger corrections
GameFi adoption remains speculative
High volatility inherent in gaming tokens
Price Outlook
Short term (1-3 months)
If AXS holds the $1.20 support level, the next major resistance zones are:
First target $1.50
Second target $2.25
Breakout scenario Potential for $4.70+ if sustained buying continues
Medium term considerations
Some analysts, including Altcoin Sherpa, suggest watching the $1.66 Fibonacci retracement level as potential resistance. The token's high beta means it can move violently in both directions.
The Bigger Picture GameFi Renaissance?
Axie Infinity's resurgence could signal a broader GameFi sector comeback in 2026.
With Improved tokenomics addressing sustainability
New game launches and ecosystem expansion
Cross-game NFT collaborations (like the Ragnarok partnership)
Institutional interest returning to gaming tokens
AXS is positioning itself as a leader in the next wave of blockchain gaming adoption.
Final Thoughts
The +120% rally in AXS isn't just hype it's backed by fundamental changes to the game's economics. By halting SLP emissions and introducing bAXS, Axie Infinity is tackling the inflation problem that killed many first generation playto earn games.
However, this is still a high-risk, high-reward play. AXS remains in deep correction territory from its all-time highs, and the GameFi sector is notoriously volatile. The sustainability of this rally depends on
Continued player adoption and engagement
Successful implementation of new game modes
Overall crypto market conditions
Ability to hold key support levels
Are you riding the AXS wave, or waiting for a pullback?
What's your take on the GameFi comeback story?
Disclaimer: This post is for informational and educational purposes only. It does not constitute financial advice. Cryptocurrency investments are highly volatile and risky. Always conduct your own research and never invest more than you can afford to lose.