Axie Infinity (AXS) is trading at $1.29 at the time of writing, marking a significant increase of more than 33% in the last 24 hours. This surge in price is accompanied by a substantial rise in trading volume, which has reached approximately $380 million. This notable performance represents AXS’s strongest single-day gain in several months and is the first time the token has sustained a price above $1 since November.
Volume Surge Signals a Shift in Market Behavior
The trading volume for AXS has experienced an extraordinary increase, surging by over 1,600% within a single day. This dramatic expansion has propelled AXS into the spotlight within the cryptocurrency market. Such a significant increase in volume often indicates a fundamental change in market participation, moving beyond routine volatility. For price breakouts to be sustained, they require robust volume support, and current data suggests that buyers are entering the market with conviction rather than hesitation.
This substantial rise in trading volume has occurred concurrently with increasing market volatility. This suggests that AXS may be emerging from a prolonged period of accumulation. Market participants appear more inclined to commit capital as the price structure improves and liquidity within the market deepens.
Tokenomic Changes Tighten Supply Dynamics
A key factor contributing to the current rally is a significant adjustment in the tokenomics of the Axie Infinity ecosystem. On January 7, the development team made the decision to disable Smooth Love Potion (SLP) rewards within the Origins game mode. This strategic move was implemented to combat automated bot farming activities and to reduce the continuous emission of tokens into circulation.
By curtailing a consistent source of sell pressure, the ecosystem's supply dynamics have become considerably tighter. A reduction in inflation often leads to a reshaping of market expectations, particularly after extended periods of downward price pressure. This specific shift appears to have played a crucial role in restoring market confidence regarding AXS's near-term price structure.
Roadmap Signals Higher Stakes Ahead
The renewed momentum for AXS has also been fueled by a refreshed focus on the project's long-term development roadmap. Jeffrey “JiHo” Zirlin, a co-founder of Axie Infinity, recently shared insights into the plans for 2026. These plans indicate a move towards taking larger strategic risks after a more cautious approach in 2025. A significant highlight among these future developments is the upcoming Atia’s Legacy Open Beta. This project is designed to introduce more sophisticated economic systems and enhance player-versus-player mechanics.
These planned developments underscore a strategic transition towards more ambitious gameplay and economic design. For a project that is fundamentally built on blockchain gaming, such shifts are of considerable importance. They have the potential to significantly reshape expectations surrounding user engagement, player retention, and the overall depth of the ecosystem.
Treasury Vote Draws Attention to Capital Strategy
Activity within the governance sphere has also contributed to the increased interest surrounding AXS. A recent proposal that was approved involved the staking of 2,829 ETH, an amount valued at approximately $9 million, from the community treasury. The objective behind this action is to generate yield from assets that were previously idle and to optimize the management of the project's treasury, which is estimated to be around $40 million.
Decisions made regarding the treasury often have a notable impact on market perception concerning sustainability and operational discipline. In this particular instance, the approval of the staking proposal signals a more proactive approach to capital management, moving away from a strategy of holding passive reserves.
Derivatives Data Confirms Rising Participation
The positive trend observed in the spot market has been mirrored in the derivatives markets. The open interest for AXS has surged by more than 180%, which indicates that traders are actively opening new positions rather than closing existing ones. A rise in open interest during a period of price advancement often suggests that traders anticipate further price continuation, rather than an imminent exhaustion of the current trend.
This market positioning aligns with the broader increase in trading volume. Traders appear to be anticipating sustained upward movement rather than a temporary price spike. The key question remains whether this conviction will be maintained as AXS encounters significant resistance levels.
From a technical analysis perspective, AXS has demonstrated a strong rebound from support levels located in the range of $0.72 to $0.80, which had held for several months. The price has decisively rejected these lower levels and has successfully moved above previous consolidation zones. Immediate support is now observed in the $1.10 to $1.20 range, an area that traders are closely monitoring. A sustained move above the $1.50 region could potentially open the path towards higher resistance zones, specifically between $1.65 and $1.75. For the present time, the market structure indicates a transition from prolonged bearish pressure towards the emergence of bullish momentum. The upcoming trading sessions will be critical in determining whether this surge develops into a sustained trend or experiences a period of consolidation.