Axie Infinity Price Prediction: AXS Surges Over 200% in One Month, Is the GameFi Revival or High-Risk at Current Levels?

On January 21, it was reported that despite the cautious sentiment in the global cryptocurrency market at the beginning of 2026, the price of Axie Infinity unexpectedly strengthened, with AXS rising over 200% in January, once surpassing $2.40, returning to levels seen before the October sell-off last year, and becoming one of the most watched tokens in the GameFi sector.

The direct trigger for this AXS surge was the project’s adjustment to its economic model. The Axie Infinity team announced that they would convert the original AXS rewards into an application token called bAXS, which players can use within Axie Core and earn additional yields through staking. This design is seen as an important attempt to improve token utility and lock-up structure, quickly igniting market sentiment. Meanwhile, the GameFi concept regained funding attention in early 2026, with some investors starting to re-enter established IPs, making Axie Infinity naturally a top choice.

Liquidity factors also contributed to the boost in AXS price. Market data shows that trading activity from South Korea has significantly increased, with some funds willing to buy AXS at higher prices, pushing the price through key resistance zones. The single-day trading volume once exceeded $1 billion, making AXS one of the most active gaming-related crypto assets on that day.

However, on-chain and derivatives data also sent mixed signals. As the price rose, the circulating supply of AXS increased correspondingly, indicating more tokens entering potential sell-off status. Additionally, deposit activity from large addresses has noticeably increased, suggesting some early holders are taking the opportunity to cash out. If buying momentum slows, these holdings could quickly turn into selling pressure.

From an ecosystem fundamentals perspective, new user growth on the Ronin network remains sluggish, with weekly active addresses far below the peak levels of 2024, indicating that the “play-to-earn” model has yet to bring a significant user re-entry. Meanwhile, AXS futures open interest has risen to multi-year highs, showing that leveraged funds are heavily betting, which also amplifies the risk of short-term volatility and forced liquidations.

While the price has rebounded sharply, the medium- and long-term sustainability of Axie Infinity still requires more user and application data for validation. Whether AXS can turn this GameFi rally into a stable upward trend largely depends on whether demand can keep pace with the current capital enthusiasm.