Whereas the cryptocurrency market stays gripped by concern as a result of world volatility, Axie Infinity (AXS) has unexpectedly emerged as a vivid spot. The AXS token rebounded sharply, climbing above $2.4 and erasing all losses from final 12 months’s October sell-off.
The important thing query is whether or not this rally can maintain itself. Multi-dimensional knowledge gives a extra goal view for traders.
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What Is Driving Axie Infinity’s (AXS) Rally in January?
Newest knowledge from BeInCrypto Value reveals that AXS has surged greater than 200% for the reason that begin of the 12 months. Each day buying and selling quantity has exceeded $1 billion.
The rally started after the mission’s founder introduced a plan to transition AXS rewards in Axie Infinity into an app-token model of AXS, often called bAXS. Gamers can use bAXS inside Axie Core and stake it to obtain extra advantages.
AXS Value Efficiency Over The Previous Three Months. Supply: BeInCrypto Value
Surprisingly, the AXS rally didn’t finish shortly. It prolonged for an additional week, regardless of a broader market correction throughout the identical interval.
Information from CoinGecko highlights one other necessary driver. South Korean merchants are enjoying a significant function in offering liquidity. Their enthusiasm pushed AXS above the $2.4 stage.
Of the greater than $1 billion in every day buying and selling quantity, Upbit alone accounted for over $320 million, or greater than 32%. Costs on Upbit additionally traded at a premium in comparison with Binance and different exchanges. This means that South Korean merchants are keen to pay larger costs, pushed by expectations of additional upside.
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As well as, a latest BeInCrypto report factors to renewed curiosity in GameFi tasks. Traders seem like revisiting the previous and reallocating capital into GameFi tokens that have been as soon as thought-about forgotten.
“Nostalgia is the most powerful emotion in the universe. There’s no other IP in crypto that can make people feel both nostalgic for the past and excited for the future. That’s the zone of genius where Axie lives.” — Jihoz.ron, Co-founder of Axie Infinity, mentioned.
Warning Indicators That May Threaten the AXS Rally
AXS’s rally in opposition to the broader market development has raised skepticism amongst some analysts. In crypto markets, inner enthusiasm can typically overpower exterior concern.
the $AXS pump does not make sense.
however nothing in crypto make sense anyway.
Get pleasure from whereas it final.
— xavie (@xavierverse) January 21, 2026
Nevertheless, behind the spectacular worth surge lie regarding on-chain indicators. AXS balances on exchanges have elevated alongside the value. This means that extra tokens have gotten obtainable, probably creating promoting stress.
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A latest BeInCrypto report additionally reveals that the seven-day common transaction rely for deposits has reached its highest stage in three years. On-chain knowledge reveals that a number of large-balance wallets have not too long ago transferred AXS to Binance.
So long as shopping for stress stays robust, these inflows will be absorbed shortly. As soon as demand weakens, the development may reverse.
One other issue price contemplating is the shortage of development in new gamers on the Ronin community, Axie Infinity’s core platform.
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Dune Analytics knowledge for Ronin reveals that weekly new lively addresses stay under 10,000. This determine has fallen sharply from greater than 500,000 in 2024 and reveals no clear indicators of restoration.
The absence of significant person base growth displays saturation within the play-to-earn mannequin. This mannequin as soon as attracted thousands and thousands of gamers throughout the pandemic. With out a recent influx of customers, AXS’s restoration may face structural challenges.
As well as, open curiosity in AXS futures contracts has exceeded $130 million, the best stage in three years. This surge highlights elevated speculative exercise, with traders utilizing leverage to wager on worth actions.
Excessive open curiosity usually implies elevated liquidation threat, particularly in risky market situations. This setting will increase the probability of cascading liquidations, which may ship AXS costs sharply decrease.
How lengthy the AXS rally can final depends upon whether or not constructive catalysts can outweigh the warning indicators highlighted above. Buying and selling within the present setting requires cautious balancing of a number of components to mitigate threat, because the market continues to face sudden and heightened volatility.
