AXS leads the crypto gaming sector with its largest single-day gain in months, driven by SLP emission changes and renewed investor interest in GameFi.
Axie Infinity has staged a remarkable comeback, surging over 60% in 24 hours to reclaim the $2 price level and spark renewed optimism in the GameFi sector.
Axie Infinity (AXS) emerged as today's top gainer among major cryptocurrencies, posting a stunning 60%+ rally that pushed the token above $2 for the first time in months. Trading volume exploded to over $435 million as investors rotated capital into the gaming sector.
The rally comes after Axie Infinity announced significant changes to its SLP (Smooth Love Potion) emissions on January 7, 2026. The team ceased SLP rewards in the Origins game mode, citing that the previous structure enabled bot farming that damaged the long-term economy. This supply-side adjustment appears to have catalyzed renewed interest in the ecosystem.
Co-founder Jeffrey "JiHo" Zirlin recently acknowledged that Axie was "too conservative" in 2025 and pledged "much larger risks" for 2026 to reignite growth, signaling a strategic pivot that has resonated with traders.
This surge represents the first significant sign of life in the GameFi sector since the 2024 bear market decimated play-to-earn projects. Axie Infinity, which pioneered the P2E model with over $4 billion in all-time NFT trading volume, has been down 99% from its $164 all-time high.
The rally suggests institutional and retail investors may be positioning ahead of major 2026 catalysts, including Axie's ambitious Atia's Legacy MMORPG launch and the Ronin blockchain's planned transition to an Ethereum-aligned Layer 2 by Q2 2026. If sustained, this momentum could trigger a broader rotation into gaming tokens.
The key test will be whether AXS can hold above the $2 support level in coming days. Traders should monitor the Atia's Legacy Q1 2026 launch timeline and any further announcements about SLP tokenomics changes. The broader question is whether this is the start of a sustained GameFi recovery or a short-term squeeze. Volume trends and whale activity over the next week will provide crucial signals.
Axie Infinity's explosive rally marks a potential inflection point for GameFi, though the sector remains highly speculative. This is a developing story, and market conditions can change rapidly.
Disclaimer: News content is for informational purposes only and should not be considered financial advice. Market conditions can change rapidly. Always conduct your own research.
