GameFi Tokens Axie Infinity and Sandbox Resist Crypto Market Downturn

Gaming Tokens Surge Despite Bitcoin Downturn

While Axie Infinity, The Sandbox, and other gaming-related cryptocurrencies have experienced notable price increases, Bitcoin continues to face downward pressure amid growing concerns over global liquidity.

Recent Performance of Gaming Tokens

According to CoinGecko, Axie Infinity has jumped 16.7% in the last day, pushing its seven-day gains to 88.5%. The Sandbox has also climbed 15.3% over the week, while Decentraland and Smooth Love Potion have posted weekly increases of 4.4% and 0.7%, respectively.

Shift in Trader Attention

These movements suggest that traders may be redirecting their focus. Bertie Wrench, the founder of the Web3 gaming NFT project Bad Bikers, told Decrypt that the current surge in gaming tokens is likely driven by speculative capital rotation, especially as interest wanes in meme coins after their prolonged rally.

Wrench also pointed out that, given the challenging macroeconomic environment—including issues like the crisis in Japan's bond market—such sector rotations are likely to continue unless broader market conditions improve.

Market Sentiment and Predictions

On the prediction platform operated by Decrypt’s parent company Dastan, users have grown more pessimistic following Bitcoin’s recent decline. The probability assigned to Bitcoin reaching $100,000 has dropped to 71%, down from 84% just a week earlier.

Debate Over the Causes of the Rally

Illia Otychenko, lead analyst at CEX.IO, offered a different perspective, arguing that the apparent strength in Axie Infinity and The Sandbox is exaggerated because these tokens are rebounding from significantly depressed levels after a prolonged slump.

He told Decrypt that the recent gains are primarily the result of specific developments within individual projects. For example, Axie Infinity recently unveiled a major overhaul of its tokenomics, aiming to rejuvenate its in-game economy and tackle issues like automated bot activity.

“These targeted updates have likely improved sentiment across the GameFi space, even in the absence of a broader shift away from privacy-focused tokens,” Otychenko explained.

Looking Ahead: What’s Needed for a Lasting Recovery?

Both experts agree that a true revival in the sector would require a substantial increase in demand for tokens within their respective games. Otychenko described the current upswing as a short-term rally rather than a fundamental transformation.

He also cautioned investors, noting that GameFi remains under significant pressure, with the sector experiencing a roughly 75% drop in 2025 and about 55% less funding compared to the previous year. According to research from Delphi, only a handful of games consistently surpass 100,000 weekly active wallets.

Further Reading

• The Biggest Games Releasing in January 2026