Axie Infinity is leading the current GameFi rally with a 200% increase after making drastic changes to its digital economy to curb inflation and attract investors.
The blockchain-based video game sector is capturing the attention of financial markets this week after a period of relative calm. Axie Infinity, one of the most recognizable names within this ecosystem, has experienced explosive growth that has surprised both analysts and players.
In the last 24 hours, the value of its main asset, the AXS tokenIt has added another 10% to a winning streak that already boasts returns exceeding 100% in the last week and an impressive 200% in the last month. This upward movement contrasts sharply with the performance of other cryptocurrencies, including Bitcoin and Ethereum; moreover, it has deep roots in the strategic decisions made by its developers and a technical transformation that has reshaped the playing field for its participants.
Join the Axie Infinity rally: click hereAn economic re-engineering to combat inflation
Axie Infinity's recent surge has its turning point in a measure adopted on January 7, 2026. On that day, the developers decided suspend issuance of the game's secondary token, Smooth Love Potion (SLP), within Origins mode.
With this decision, developers sought to curb the activity of bots that generated large volumes of digital assets to sell immediately on the market, causing a constant oversupply. According to market data, the restriction has reduced daily SLP inflation by almost 90%, altering the internal balance between supply and demand that had kept the ecosystem under pressure for years.
By eliminating this constant selling pressure, the perceived value of the Axie Infinity ecosystem has shifted. The AXS token, which serves as the governance pillar and allows users to participate in protocol decisions, as well as earn rewards for holding it, has become the primary beneficiary of this programmed scarcity.
Market analysts point out that the reduction in new token generation has created a much healthier environment for long-term investors, as the outflow of capital into fiat currency has been significantly contained. This restructuring of the game's internal economy has provided the necessary fuel for the price of AXS to recover to levels not seen since mid-September 2025.
Source: Coingecko
Capital returns to the GameFi sector
In addition to internal adjustments, another external factor driving the rise of tokens like AXS, which belong to the GameFi sector, is the sectoral capital rotation.
In the world of digital finance, capital typically moves in waves from more stable assets to niches with higher risk and growth potential. Currently, investors are directing their funds toward the GameFi sector, which combines finance with interactive entertainment. Within this category, Axie Infinity maintains a privileged position due to its ample liquidity and the brand recognition it built during the previous cryptocurrency bull run. This makes it the natural choice for those seeking exposure to this industry without venturing into unknown or low-cap projects.
On the other hand, from a technical perspective, the recent performance of the AXS token has offered signals that reinforce the idea of a trend reversal. After a prolonged period of weakness, the price managed overcoming the key resistance around $2, a level that had functioned as a checkpoint for vendors.
Upon rising above the 200-day moving average, the asset triggered a chain reaction that led several short sellers to close their positions, temporarily increasing buying pressure. This move, accompanied by a surge in volume, suggests a firmer base for the upward advance and renews the confidence of participants who see signs of consolidation in the market.
Access Axie Infinity from Bit2MeAxie Infinity redefines its economy and commits to sustainability
With the changes implemented in its tokenomics earlier this month, the Axie Infinity player community is undergoing a transformation towards a more sustainable model.
The project developers have moved away from the logic of unlimited rewards to focus on ecosystem balance, a sign of their commitment to the project's future. This new phase aims to attract players and enthusiasts who value both the experience and the ownership of digital assets with real potential. Thus, the reorganization of token issuance marks a shift towards a more controlled model, where the internal economy is adjusted to the healthy growth of the community. Recent technical improvements and renewed interest from institutional players in assets linked to digital entertainment reinforce this vision of maturity.
Now, the industry is closely watching how this new approach to inflation control could become a benchmark for other projects seeking to establish themselves within the crypto ecosystem.
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