GameFi surges as Bitcoin trades sideways… Axie Infinity up 131% in a week

With Bitcoin (BTC) failing to find a clear direction around $90,000, GameFi tokens are leading the market higher. Axie Infinity (AXS), in particular, has posted a sharp rally in a short period, drawing investors’ attention.

According to Decrypt on the 24th (local time), Bitcoin recently rebounded from around $88,000 to reclaim the $90,000 level, but it continues to trade below the “death cross” zone used to gauge medium- to long-term trends, failing to break out of a bearish pattern. With the 50-day moving average below the 200-day, technical chatter is pointing to the possibility of further rangebound trading or a pullback.

By contrast, the GameFi sector is seeing strong inflows. Axie Infinity has surged 131% over the past week and is up more than 250% over the past month. Over the same period, major GameFi tokens such as The Sandbox (SAND) also posted double-digit gains.

Decrypt cited a new update from developer Sky Mavis as the catalyst behind Axie Infinity’s jump. Sky Mavis recently launched “Origins Season 16,” overhauled the reward structure, and introduced the non-transferable token bAXS, which is pegged 1-to-1 with AXS, reducing near-term selling pressure.

These changes have translated into higher trading volumes and a recovery in daily active users, while accumulation by large holders has also been observed. The market is analyzing that while Bitcoin remains rangebound, some funds are rotating into higher-volatility GameFi assets.

Still, Axie Infinity remains far below its historical peak. AXS is currently trading at about $2.417 in the Binance Tether (USDT) market, roughly 99% below the $160 level that marked the peak of the last bull market. The market also notes that after such a rapid short-term rise, the potential for heightened volatility cannot be ruled out.