- Axie Infinity jumped about 88.5% on the week after a major tokenomics overhaul.
- Short-term gains also appeared in other gaming tokens, including The Sandbox, Decentraland, and Smooth Love Potion.
- One analyst called the rally capital rotation and high-risk speculation tied to broader market shifts.
- Another analyst tied the move to project-level catalysts, citing Axie’s tokenomics changes.
- Experts say a lasting Gamefi recovery will need stronger in-game token utility and higher user demand.
Over the past week, Axie Infinity surged 88.5% after announcing a major tokenomics restructuring aimed at revitalizing its in-game economy, while other gaming tokens also posted gains as Bitcoin traded lower amid global liquidity concerns. Over 24 hours, Axie rose 16.7%; The Sandbox rallied about 15.3% on the week, and tokens such as Decentraland and Smooth Love Potion gained 4.4% and 0.7% respectively, according to CoinGecko data.
Some market participants view the moves as a rotation of capital into higher-risk assets after meme-coin activity. “Realistically, this momentary defiance in gaming tokens is purely capital rotation and high-risk speculation,” said Bertie Wrench, who noted that broader macro pressure—such as strains in Japan’s bond market—could keep such rotations likely unless conditions improve.
Other analysts flag project-specific catalysts. Illia Otychenko said the swings look pronounced because these tokens started from depressed levels and pointed to last week’s tokenomics changes for Axie. “These localized developments likely helped lift sentiment across the broader GameFi sector, even without a clear narrative rotation from privacy-focused tokens,” he said.
Otychenko also warned the rally is not necessarily structural. “The current move looks more like a local rally than a structural shift,” and he noted that “GameFi as a sector is still under pressure, with roughly a 75% decline in 2025 and around 55% less funding last year,” citing research from Delphi.
Sentiment indicators show weakened confidence in Bitcoin’s path: users on the prediction market Myriad were assigning a 71% chance that Bitcoin would rally to $100,000, down from higher odds earlier in the week. Industry observers agree a sustained GameFi revival will require a real increase in token utility and user demand rather than temporary price rotations.
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