AXS Surges on Structural Overhaul and Upcoming Launch

• Axie Infinity ($AXS) surged by approximately 117% in seven days in early January 2026, outpacing other large-cap gaming tokens.
• Structural changes, including the halt of SLP emissions and the introduction of bAXS, are designed to improve incentives and discourage bot farming.
• Upcoming game expansions, such as Atia's Legacy MMO, are seen as critical for reactivating dormant NFT value and boosting player engagement.

Axie Infinity ($AXS) experienced a notable price movement in early January 2026, breaking key resistance levels on high volume. The surge was driven by structural changes to the game's tokenomics, including the January 7 halt of SLP emissions. This move directly removes a mechanism that had been exploited by bot farming, reshaping the economic model of the game.

The introduction of bAXS is another key development. This new token is designed to reward actual gameplay rather than speculation, incentivizing long-term player participation. These changes aim to shift the focus from short-term gains to sustained engagement, which could help stabilize and grow the token's value.

The broader GameFi market also appears to be showing signs of recovery. Axie Infinity's rise is part of a larger trend where GameFi tokens are outperforming other sectors. The 20-day EMA is approaching the 100-day EMA, suggesting a possible bullish trend in the sector. Institutional and whale activity is also increasing, with related tokens like The Sandbox (SAND) and Decentraland (MANA) showing similar strength.

What Are the Key Structural Changes in Axie Infinity?

The halt of SLP emissions is one of the most significant changes in Axie Infinity's tokenomics. Previously, SLP emissions created an environment where bot farming was prevalent, diluting the token's value and incentivizing speculative behavior. By halting these emissions, Sky Mavis is addressing this issue head-on, aiming to create a more sustainable economic model.

In addition to this, the introduction of bAXS represents a major shift in how players are rewarded. Unlike SLP, which was often used for in-game purchases and trading, bAXS is designed to reward actual gameplay and discourage speculative behavior. This change is expected to increase the number of active players, leading to higher in-game transaction volume.

What Role Does Atia's Legacy MMO Play in Axie Infinity's Strategy?

The upcoming launch of Atia's Legacy MMO is a critical component of Axie Infinity's long-term strategy. This expansion is expected to attract a new wave of players and reactivate dormant NFTs, increasing the overall player base and engagement. The success of the beta will be a key indicator of whether these structural changes are effective in the long run.

This MMO also provides an opportunity for Sky Mavis to expand the Axie Infinity universe beyond its current format. By introducing new game mechanics and content, the company can attract a broader audience and create new revenue streams. This is particularly important for a game that has faced challenges in maintaining consistent player engagement.

What Does the Broader Market Say About Axie Infinity's Prospects?

The broader GameFi market is showing signs of recovery, and Axie Infinity is at the center of this trend. The 117% increase in AXS over seven days is one of the strongest performances in the sector, outpacing other large-cap gaming tokens.

This performance is supported by technical indicators, including the movement of the 20-day EMA approaching the 100-day EMA. These indicators suggest that the market is beginning to move out of a bearish phase and into a more bullish trend.

Institutional and whale activity also supports this narrative. Related tokens like The Sandbox (SAND) and Decentraland (MANA) are showing similar strength, with whale accumulation evident in both. This suggests that the broader market is beginning to take notice of GameFi's potential.

Overall, Axie Infinity's structural changes, combined with the broader market's positive sentiment, suggest that the token has strong potential for further growth. However, the success of these changes will ultimately depend on the reception of Atia's Legacy MMO and the ability of Sky Mavis to maintain player engagement over the long term.