Axie Infinity’s Bizarre Comeback: Will It Crash or Soar?

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While the crypto world is currently gripped by enough panic to make a paranoiac reconsider their medication, Axie Infinity (AXS) has inexplicably decided to throw a party. The token has leaped above $2.4, erasing all the misery from last October’s slump. One wonders if the market’s collective trauma from 2022 is finally catching up to its nerves.

The big question now is whether this rally is a fleeting romp or a genuine comeback. Let’s consult the data-or, as I call it, the “not-so-subtle hints from the universe.”

What’s Fueling Axie Infinity’s (AXS) January Juggernaut?

According to BeInCrypto Price, AXS has surged over 200% since the year began. Daily trading volume has crossed the $1 billion mark, which is either impressive or a sign someone’s throwing money at a wall to see what sticks.

The rally kicked off after the project’s founder announced a plan to turn AXS rewards into a glorified app-token called bAXS. Players can now stake it for benefits, which sounds suspiciously like a game of crypto Monopoly where the rules change every 30 minutes.

Surprisingly, the AXS party didn’t crash immediately. It rolled on for another week, even as the broader market took a dive. One can only assume the South Korean traders involved are either very brave or very desperate.

CoinGecko data reveals that South Korea is the real MVP here, pumping liquidity into AXS like it’s a defibrillator for a dying asset. Their enthusiasm sent prices soaring past $2.4, which is either a triumph of hope over experience or a national obsession with gaming tokens.

Of that $1 billion in daily volume, Upbit alone gobbled up $320 million-32% of the pie. Prices there also traded at a premium compared to Binance, suggesting South Koreans are willing to pay extra for the privilege of buying into a token that might collapse next Tuesday. Welcome to crypto!

Meanwhile, a recent BeInCrypto report notes a curious trend: investors are resurrecting GameFi tokens like they’re digging up old memes. It’s the crypto equivalent of binge-watching a guilty-pleasure show you swore you’d never revisit.

“Nostalgia is the most powerful emotion in the universe. There’s no other IP in crypto that can make people feel both nostalgic for the past and excited for the future. That’s the zone of genius where Axie lives.” – Jihoz.ron, Co-founder of Axie Infinity, said. (Who knew blockchain could make us all feel like we’re 12 years old again?)

Warning Signals That Could Derail the AXS Party

AXS’s rally against the broader market has analysts squinting at their screens like they’re trying to decode hieroglyphics. In crypto, internal enthusiasm often outshines external fear until it doesn’t.

the $AXS pump doesn’t make sense.

but nothing in crypto make sense anyway.

Enjoy while it last.

– xavie (@xavierverse) January 21, 2026

Behind the glittering price surge, though, the blockchain is whispering ominous things. Exchange balances for AXS have spiked alongside the price, which is like seeing a crowd of people suddenly start loading up their suitcases at a hotel during a hurricane. Selling pressure is brewing.

A recent report also shows that Ronin’s deposit transaction count is hitting three-year highs. On-chain data reveals that big wallets have been shipping AXS to Binance like they’re preparing for a crypto apocalypse. If this were a movie, it would be the moment the hero notices the villain’s henchmen gathering in the background.

As long as buying pressure keeps roaring, these inflows might not matter. But once demand falters, the music stops-and the chairs vanish.

Another red flag? New players on Ronin, Axie’s core platform, are vanishing faster than my will to invest in anything post-2020.

Dune Analytics data shows weekly new active addresses on Ronin are stuck below 10,000, down from 500,000 in 2024. The play-to-earn model, once the golden goose of crypto, is clearly out of eggs. Without fresh users, AXS’s comeback could be as sustainable as a house of cards in a tornado.

Oh, and open interest in AXS futures has hit $130 million, the highest in three years. That’s a lot of people betting on volatility with leverage, which is like playing Russian roulette with a loaded gun and a bigger mortgage.

High open interest is a fancy way of saying “get ready for chaos.” In a volatile market, this could trigger a cascade of liquidations that would make even the most stoic investor reach for the whiskey.

So, how long will this AXS rally last? Only time will tell, but if history teaches us anything, it’s that in crypto, the only thing more unpredictable than the market is the person who thinks they’ve figured it out. Trade carefully-or don’t. Either way, it’s a circus, and the clowns are wearing NFTs.

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2026-01-21 11:07