Axie Infinity (AXS) is trading at $1.29 at the time of writing, up more than 33% in the last 24 hours, as trading volume surged to roughly $380 million.
The sudden burst of activity marks AXS’s strongest single-day performance in months and coincides with its first sustained move above the $1 level since November. Why has interest returned so quickly?
Volume Surge Signals a Shift in Market Behavior
Trading volume increased by more than 1,600% within a single day, pushing AXS into the spotlight across the crypto market. Such expansion often signals a change in market participation rather than routine volatility. Price breakouts require volume support to persist, and the current data show buyers stepping in with size rather than hesitation.
This rise in volume arrived alongside expanding volatility, suggesting that AXS has moved out of a prolonged accumulation phase. Market participants appear more willing to commit capital as price structure improves and liquidity deepens.
Tokenomic Changes Tighten Supply Dynamics
One catalyst behind the rally stems from a major tokenomic adjustment within the Axie Infinity ecosystem. On January 7, the development team disabled Smooth Love Potion rewards in the Origins game mode. This decision targeted automated bot farming and reduced persistent token emissions.
By cutting off a steady source of sell pressure, the ecosystem’s supply dynamics tightened sharply. Reduced inflation often reshapes market expectations, especially after extended periods of downside pressure. This shift appears to have played a role in restoring confidence around AXS’s near-term structure.
Roadmap Signals Higher Stakes Ahead
Momentum also followed renewed focus on Axie Infinity’s long-term roadmap. Co-founder Jeffrey “JiHo” Zirlin recently outlined plans for 2026 that involve larger strategic risks after a cautious 2025. Among them sits Atia’s Legacy Open Beta, a project that aims to introduce deeper economic systems and more complex player-versus-player mechanics.
Such developments highlight a transition toward more ambitious gameplay and economic design. For a project built on blockchain gaming, these shifts matter. They reshape expectations around engagement, retention, and ecosystem depth.
Treasury Vote Draws Attention to Capital Strategy
Governance activity added another layer of interest. A recent proposal approved the staking of 2,829 ETH, valued near $9 million, from the community treasury. This move aims to generate yield from idle assets and optimize the project’s roughly $40 million treasury.
Treasury actions often influence perception around sustainability and operational discipline. In this case, the vote signaled a more active approach to capital management rather than passive reserves.
Derivatives Data Confirms Rising Participation
Derivatives markets echoed the spot rally. Open interest surged by more than 180%, indicating that traders are opening new positions instead of closing existing ones. Rising open interest during a price advance often reflects expectations of continuation rather than exhaustion.
This positioning aligns with the broader increase in volume. Traders appear to anticipate follow-through rather than a brief spike. Will that conviction hold through key resistance levels?
From a technical perspective, AXS rebounded strongly from multi-month support near the $0.72 to $0.80 range. Price rejected those lows decisively and pushed above prior consolidation zones. Immediate support now clusters between $1.10 and $1.20, an area that traders continue to monitor closely.
A sustained move above the $1.50 region could open the path toward higher resistance zones near $1.65 to $1.75. For now, market structure reflects a transition from prolonged bearish pressure toward emerging bullish momentum. The next sessions will reveal whether this surge evolves into a sustained trend or pauses for consolidation.