Axie Infinity Price Surges Amid bAXS Token Launch and Tokenomics Restructuring

• Axie Infinity's token (AXS) has surged over 30% in the past week, reaching $1.30, following the launch of the bAXS token.
• The bAXS token is designed to stabilize Axie Infinity's tokenomics by reducing inflation and improving user engagement.
• Trading volume for AXS increased by over 1,600% in 24 hours, reflecting renewed investor interest and a shift from bearish to bullish market sentiment.

Axie Infinity's AXS token price has rebounded sharply, driven by the launch of the bAXS token, which aims to reduce sell pressure and enhance user participation. The token's price has moved above $1 for the first time since November, indicating a potential reversal from a four-year low.

The introduction of the bAXS token is a key part of Axie Infinity's broader tokenomics overhaul. This includes structural changes in the Origins game mode, such as the removal of SLP rewards to curb bot farming. These adjustments are expected to improve the long-term sustainability of the Axie Infinity ecosystem.

What is the impact of the bAXS token on AXS price movements?

The bAXS token has had a significant impact on AXS price dynamics. By tying rewards to user accounts and improving the token's utility, bAXS is designed to reduce sell pressure and encourage organic user growth. This has led to a notable price increase, with AXS trading at $1.30 as of January 17, 2026.

Additionally, the bAXS token introduces a new layer of engagement by allowing users to earn, stake, or spend within the Axie Infinity ecosystem. This increased utility is expected to support long-term price stability and economic sustainability for the project.

What are the technical indicators suggesting about the future of AXS?

Technical indicators suggest that the AXS token could continue its upward trend. The RSI is currently at 66, indicating that the token is not yet in overbought territory and has room to extend its gains. The MACD has also marked a bullish crossover, reinforcing the positive momentum.

Key support and resistance levels are being closely monitored. The $1.20 level is currently a significant support, while resistance levels at $1.50 and $2.25 are expected to be crucial in determining the token's future direction. If these levels hold, it could indicate sustained bullish momentum.

How does the broader market sentiment affect Axie Infinity's performance?

The broader market sentiment plays a crucial role in Axie Infinity's performance. While the overall GameFi market has seen a 2% weekly decline, Axie Infinity's AXS token has outperformed its peers, drawing renewed investor interest. This divergence suggests that Axie Infinity's structural changes and tokenomics overhaul have successfully positioned the project for potential long-term growth.

Institutional investors and market analysts are watching closely as the SEC's decision on the PENGU ETF is delayed, which could introduce additional volatility into the market. However, Axie Infinity's recent performance indicates that the project is gaining traction and could benefit from a more favorable regulatory environment.