Axie Infinity's native token AXS has surged over 100% in the past week, leading a broader resurgence in the GameFi sector. According to data from CoinGecko, AXS reached approximately $2.02 during the rally, marking a 64% single-day increase and positioning it as the top performer in the gaming token category.
The rally is distinguished by unusually high trading volumes, with the past 24 hours seeing over $997 million in spot volume and futures trading volume exceeding $500 million. Open interest in futures markets hovers around $44 million, indicating both short coverings and the creation of new positions. This contrasts with previous spikes that were characterized by lower volume and suggests stronger underlying market participation.
Analysts attribute the bullish momentum to a return of investor appetite for high-volatility sectors like GameFi, combined with specific structural changes within the Axie Infinity ecosystem. The project is implementing significant updates to its staking and reward mechanics, including the introduction of an experimental reputation-based system called the Axie Score.
Central to this overhaul is the planned rollout of bonded AXS (bAXS), a token backed 1:1 by AXS. bAXS is designed to keep value circulating within the ecosystem and will be spendable in Axie's core applications and stakable. The system will integrate a variable transaction fee for token sellers, with fees reduced for users with higher Axie Score tiers, thereby incentivizing community contribution.
"A good day for $AXS, but the true story here is the structural changes to supply that we're making this year," stated the project's co-founder on X. Another official post read, "This is the start of a transformative year for Axie Infinity... the strongest will survive by working together as one digital nation."
The resurgence extends beyond AXS, lifting the entire GameFi sector. The overall market cap for gaming tokens is around $7 billion, up 6.3% in 24 hours. Other notable gainers include Ronin (RON), up 20% (24h) and 28% (7d); The Sandbox (SAND), up 30% (24h) and 32% (7d); Smooth Love Potion (SLP), up 14% (24h) and 16% (7d); Decentraland (MANA), up 21% (24h) and 18% (7d); and Illuvium (ILV), up 15% (24h) and 14% (7d).
