In a week characterized by renewed optimism in the blockchain gaming sector, Axie Infinity (AXS) has emerged as the standout performer. As of January 22, 2026, the AXS price recorded a sharp 23% daily increase, effectively topping the gainers' list among the top 100 cryptocurrencies by market capitalization. This rally pushed the token past the psychological resistance of $2.40, a level not seen in months, and has reignited discussions about a broader GameFi recovery.
However, a closer look at the on-chain data and exchange distribution reveals a highly concentrated source of momentum: the South Korean market.
Understanding the Trading Volume Surge
The most striking feature of this rally is the geographical distribution of liquidity. Data from major exchanges indicates that South Korea's leading platforms, Upbit and Bithumb, combined to account for over 40% of the total global trading volume for AXS.
For crypto users, the impact of South Korean trading volume on AXS price is a familiar yet potent signal. South Korean retail investors have historically shown a high risk-appetite for "blue-chip" gaming tokens. When local sentiment turns bullish, it often creates a "Kimchi Premium" effect, where tokens trade at higher prices on Korean exchanges compared to global counterparts like Binance or Coinbase. This localized demand often acts as a fuel for global price discovery, drawing in international arbitrageurs and trend-followers.
Core Drivers: Why is the AXS Price Rising in 2026?
Beyond speculative trading, several fundamental shifts in the Axie Infinity ecosystem have contributed to the recent AXS price trend analysis.
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Aggressive Tokenomics Overhaul: On January 7, 2026, Sky Mavis implemented a major change by halting SLP (Smooth Love Potion) emissions in its "Origins" mode. By cutting off a primary source of inflation—often exploited by automated bot farms—the project has significantly reduced sell pressure on its secondary tokens.
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The Rise of bAXS: The introduction of bAXS, a new gameplay-earned token, has shifted the ecosystem's focus toward genuine player engagement. Initial reports suggest that tying rewards to account-bound reputation has helped stabilize the internal economy, boosting investor confidence in the long-term utility of the primary AXS governance token.
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Anticipation for "Atia’s Legacy": With a new MMO (Massively Multiplayer Online) title targeting a Q2 2026 beta release, the market is pricing in a potential resurgence of active users.
Technical Outlook and the Road to $3
From a technical perspective, the 2026 AXS price prediction and sentiment have shifted from "bearish accumulation" to "bullish breakout." The token recently sliced through its 200-day Exponential Moving Average (EMA), a technical milestone that often attracts trend-following institutional algorithms.
According to market analysts, if the AXS price can maintain a foothold above the $1.95–$2.05 support zone, the next objective for bulls sits near the $3.00 resistance level. However, some technical indicators, such as the Relative Strength Index (RSI), are beginning to signal overbought conditions, suggesting that a short-term consolidation or "cooling off" period may be imminent.
Navigating the Risks
While the 23% surge is impressive, users should remain mindful of the risks behind AXS trading volume spikes. The current rally is not without its red flags:
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Concentration Risk: Because the rally is heavily reliant on South Korean liquidity, any shift in local regulations or a sudden change in sentiment on Upbit could lead to a sharp, cascading retracement globally.
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Exchange Inflow Spikes: On-chain alerts show that exchange deposits for AXS have reached multi-month highs. This typically indicates that "whales" or early stakers are moving assets onto exchanges to take profits, which could create a ceiling for the current uptrend.
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Stagnant Organic Growth: While the token price is up, the actual number of daily active wallets (DAW) in the game has not yet returned to its historic highs. Without a corresponding increase in real players, the price rally remains largely driven by financial speculation rather than ecosystem utility.
Summary
The recent performance of AXS serves as a barometer for the signs of GameFi recovery in 2026. It highlights how a combination of aggressive economic reform and concentrated regional demand can revive interest in legacy projects. For the average user, the takeaway is one of "cautious optimism"—acknowledging the strength of the breakout while remaining vigilant about the volatility inherent in South Korea-driven rallies.