Axie Infinity (AXS) Jumps 60%—Tokenomics Restructuring and bAXS Launch Spark Market Optimism

Axie Infinity’s native token, AXS, has surged over 60% in early 2026, driven by tokenomics reforms and the introduction of bAXS to reduce sell pressure and stabilize in-game economics according to TradingView.
- The AXS price has risen past $2 amid increased trading volume and structural changes in the game’s Origins mode, including the halt of SLP emissions to prevent bot farming according to TradingView.
- bAXS, a new gameplay-earned token, is designed to replace AXS for rewards and is tied to user accounts to improve long-term engagement and sustainability according to Yahoo Finance.

Axie Infinity is undergoing significant changes in 2026 to revitalize its in-game economy and address persistent issues with bot farming and token supply volatility according to Yahoo Finance. The project is transitioning AXS-based rewards to bAXS, a token that can be earned, staked, or spent but remains bound to user accounts according to TradingView. This move is intended to reduce AXS sell pressure and encourage organic gameplay engagement according to MEXC. The AXS token has also seen strong price action, rising past $2 with increased buying interest and liquidity absorption according to AInvest.

The broader GameFi market has experienced mixed results in early 2026, with some tokens struggling to maintain momentum and others, like AXS, outperforming due to strategic reforms according to Yahoo Finance. Projects like Pixiland have announced a shift from Web3 to Web2 models, reflecting evolving market conditions and investor preferences according to Yahoo Finance. Meanwhile, the Ronin Network, which hosts Axie Infinity, has introduced validator node expansions and a $1M bug bounty program to enhance security and rebuild trust following a major hack in 2022 according to Eneba.

Axie Infinity’s tokenomics overhauls are part of broader 2026 plans to stabilize supply and improve user engagement, with bAXS playing a central role in this strategy according to Yahoo Finance. By tying gameplay rewards to user accounts, the project aims to reduce reliance on bot-driven activity and foster a more self-sustaining economic model according to Eneba. The success of these initiatives will depend on adoption and the integration of bAXS into governance and staking mechanisms within the Axie Infinity ecosystem according to Eneba.

The GameFi sector remains volatile in early 2026, with the market cap declining to $9.35 billion as regulatory scrutiny and shifting investor sentiment impact smaller tokens according to MEXC. While Axie Infinity’s AXS has outperformed many peers, the broader market has seen sharp price swings and reduced liquidity for tokens like World of Dypians (WOD) according to Yahoo Finance. Traders are rotating into GameFi assets as sentiment improves, with AXS testing key resistance levels and showing signs of a potential breakout according to AInvest.

What Is the Impact of Tokenomics Changes on AXS?

The introduction of bAXS represents a strategic shift in Axie Infinity’s approach to token distribution and in-game engagement according to Yahoo Finance. By moving away from SLP-based farming and AXS emissions, the project aims to reduce sell pressure and promote a more balanced economic model according to TradingView. This approach is expected to stabilize AXS’s supply and encourage users to retain tokens for long-term value rather than short-term trading according to MEXC. The AXS price has responded positively to these reforms, with liquidity accumulation and reduced short-term volatility supporting a potential breakout above $1.50 according to AInvest.

How Do Broader Market Dynamics Affect the GameFi Sector?

The GameFi market has faced structural challenges in early 2026, with shifting investor sentiment and regulatory pressures impacting smaller projects according to Yahoo Finance. While Axie Infinity is adapting with tokenomics reforms and enhanced security measures, other projects are pivoting to Web2 models or scaling back on blockchain integration according to MEXC. The broader market cap has declined to $9.35 billion, with AXS and Ronin (RON) standing out for their resilience and strategic adaptations according to MEXC. Traders are closely watching AXS’s ability to maintain momentum, as liquidity absorption and key resistance levels suggest a potential for further price growth according to AInvest.

The success of Axie Infinity’s tokenomics overhaul will depend on the adoption of bAXS and the broader health of the GameFi sector according to Eneba. With structural reforms in place and a focus on long-term engagement, the project aims to create a more sustainable economic model that supports both players and investors according to Yahoo Finance. However, the volatile nature of the market and ongoing regulatory scrutiny remain key risks for the sector as a whole according to MEXC.