GameFi’s Comeback: Tokens Rebound with Flair!

by

GameFi tokens, once abandoned by all but the most devoted followers, were left in a doleful state after a brutal 2025. The sector ended the year down roughly 75%, wiping out most investor interest with the grace of a disgruntled penguin. But early 2026 is starting to show something different-perhaps a glimmer of hope, or merely the faintest whisper of a mirage.

Usage data and prices are quietly turning up across a few gaming-focused chains, like a shy guest arriving late to a party. It is still early, but for the first time in months, the numbers suggest GameFi may be stabilizing-though one suspects the “stabilizing” here refers more to the wobbles of a tightrope walker than any actual balance.

GameFi Is Showing Early Signs of Life Again – What Gives

The first signal comes from on-chain usage, which has been as elusive as a well-dressed gentleman at a party.

While scanning early-2026 Dune analytics dashboard data across EVM chains, one metric stood out: average transactions per active wallet. This measures the depth of activity, not just the wallet count. Over the past four consecutive days, B3, the gaming layer built on Base, has led all major chains on this metric, beating Optimism, Mantle, Flow, and others. One might say B3 has been the belle of the ball, though its rivals are too polite to admit it.

That matters because real gaming behavior shows up as repeated actions by the same users-like a cat repeatedly batting at a laser pointer, albeit with slightly more cryptocurrency involved.

Base itself is reinforcing this signal. Beyond B3’s dominance in per-wallet activity, Base has also ranked near the top in total daily transactions over the same period, indicating that gaming activity is feeding into broader network usage. One might call this “network synergy,” though it sounds more like a euphemism for “everyone’s just trying to get a slice of the pie.”

A similar pattern is appearing on Sei, another gaming-heavy chain. Over the past several days, Sei has consistently stood out in daily unique addresses. One might say Sei is the “star of the show,” though the show seems to be a very quiet one.

When broken down further, DappRadar data shows multiple Sei-based games posting sharp 24-hour growth in active wallets. One could argue this is the first time in months that “growth” has been a word associated with GameFi, which is like saying a zombie is “feeling alive.”

Context matters here. GameFi fell nearly 75% in 2025.

According to CoinGecko’s Crypto Narratives Ranked by Returns 2025, RWA led the market with +185.76%, followed by Layer 1 (+80.31%) and Made in USA (+30.62%), while most other sectors posted losses-led by Gaming (−75.16%) and DePIN (−76.74%).

– Wu Blockchain (@WuBlockchain) December 26, 2025

As the first month of 2026 begins, these signals are starting to line up, as highlighted by experts like Yat Siu, Chairman of Animoca Brands.

1/ Specific web3 gaming tokens in the @animocabrands fam are sharply up with volume for $AXS and $SAND over $1 billion and $380m respectively. Over the last 30 days $CHECK is up 300% $AXS 143% $SAND 35% during the same period. 2026 will be an exciting year for gaming a 🧵👇

– Yat Siu (@ysiu) January 18, 2026

This does not mean GameFi is back in full force. But it does suggest that the worst phase of abandonment may be passing-though one suspects the “worst phase” was merely a prelude to a more dramatic performance.

When asked what really matters for a GameFi recovery, and which signs investors should focus on beyond short-term price moves, Robby Yung, CEO of Animoca Brands, said in an exclusive commentary to BeInCrypto:

“For the GameFi category in general, I think that there needs to be a solid, engaging product underlying the token (as always),” he said.

That brings the focus to price. A small group of established GameFi tokens is already responding-though one suspects they’re more interested in a revival than a genuine resurgence.

Axie Infinity (AXS): Sentiment Surge and Structure Align

Axie Infinity is emerging as one of the strongest leaders in the GameFi rebound. AXS is up roughly 117% over the past seven days, clearly outperforming most large-cap gaming tokens as January progresses. One might say AXS is the “star of the show,” though the show is still in its early acts.

One reason Axie is moving ahead of the pack is improving sentiment, driven by a shift in how the community views the project. On January 17, positive sentiment for AXS spiked to 8.31, the highest level seen in over six months. Positive sentiment tracks how often a token is discussed favorably across social and on-chain channels, and spikes of this size usually reflect renewed engagement rather than late-stage speculation. One might call this “engagement,” though it’s more likely a case of “desperation” dressed in fancy clothes.

That sentiment shift lines up with a fundamental catalyst highlighted directly by Robby Yung, who addressed Axie’s recent strength:

“The catalyst, in this case, was a change in the tokenomic model for AXS, which was very well-received by the community, and led to an uptick in buying as the community was reinvigorated, so this is very much a grass roots-led movement,” he mentioned.

While that sentiment reading has cooled slightly, it remains elevated compared to recent weeks, keeping attention focused on AXS-though one suspects the attention is more out of curiosity than genuine belief.

From a price perspective, AXS began its rally in early January and is now consolidating after a sharp vertical move. This pause resembles a bull-flag structure, where price digests gains without breaking the trend. As long as higher lows continue to hold, the pattern remains constructive rather than exhausted. One might call this “constructive,” though it’s more likely a case of “hopeful optimism.”

Trend support is tightening. The 20-day exponential moving average (EMA) is rising toward the 100-day exponential moving average, which often acts as a medium-term trend filter. A confirmed bullish crossover would reinforce the continuation case. A clean daily close above $2.20 would signal a breakout from consolidation and open upside toward $3.11 and even higher. One might say this is “open upside,” though it’s more like “open speculation.”

Invalidation levels are well defined. A sustained drop below $1.98 would weaken the bullish structure. A deeper move below $1.63 and eventually the 100-day moving average line would invalidate the setup. One might call this “invalidation,” though it’s more like “a reminder that nothing is certain in the world of GameFi.”

The Sandbox (SAND): Axie’s Bellwether Effect Spills Into Larger GameFi Tokens

The Sandbox is beginning to follow Axie Infinity’s lead, reinforcing the idea that the GameFi rebound is spreading beyond a single token. SAND is up roughly 27% over the past seven days and nearly 9% in the last 24 hours, a notable move for one of the largest gaming tokens by market value. One might say this is “notable,” though it’s more like “notable in the sense of ‘why is this happening?’”

That sequencing matters. Axie moved first, and Sandbox is reacting after, despite SAND being the leader in terms of market cap. This lines up with how Robby Yung framed the sector dynamic, noting that Axie often sets the tone for broader GameFi moves. As he put it,

“AXS is very much a bellwether in this category, so when we see movement there, it’s likely to be good news for the rest of the sector,” he said.

On-chain data supports the positive outlook. Since January 16, SAND’s exchange flow balance has flipped sharply. Earlier in the month, exchange balances showed net inflows of about 4.36 million SAND, signaling active selling. That has now reversed into net outflows of roughly 2.33 million SAND, meaning tokens are being pulled off exchanges rather than prepared for sale. One might call this “pulling tokens off exchanges,” though it’s more like “hoarding tokens with the enthusiasm of a child collecting candy.”

Buying pressure rising alongside price strength is a constructive signal, especially for a large-cap token. One might say this is “constructive,” though it’s more like “constructive in the sense of ‘let’s hope this continues.’”

From a price structure standpoint, SAND is forming a cup-and-handle pattern, another breakout formation. The rounded base developed through December, followed by a strong recovery leg in early January. Price is now consolidating in the handle zone. A clean daily close above $0.168 would break the neckline and open upside toward $0.190, with extension potential toward the $0.227 zone. One might call this “open upside,” though it’s more like “open hope.”

Invalidation remains clear. Losing $0.145 weakens the structure, while a drop below $0.106 would invalidate the bullish setup entirely. One might call this “invalidation,” though it’s more like “a reminder that nothing is certain.”

Decentraland (MANA): Whale Accumulation Signals Early Positioning

Decentraland is the weakest short-term performer among leading GameFi tokens, but that may be exactly why it is attracting big money. MANA is up about 7% over the past 24 hours and roughly 15% over the past seven days, lagging Axie Infinity and The Sandbox in percentage terms. One might say this is “lagging,” though it’s more like “lagging in the sense of ‘why are we even here?’”

What stands out is how whales are positioned during that relative underperformance. Since January 17, wallets holding large MANA balances have increased their combined holdings from roughly 1.00 billion tokens to 1.02 billion, an addition of about 20 million MANA, almost $3.2 million, in just a few days. At one point, whale balances briefly reached 1.03 billion before some light trimming. That pullback was shallow and followed by renewed accumulation, suggesting positioning rather than distribution. One might call this “positioning,” though it’s more like “strategic hoarding.”

Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.

From a price structure perspective, MANA appears to be breaking out of an inverse head-and-shoulders pattern on the daily chart. This pattern often marks a transition from downtrend to recovery when it holds. The breakout zone sits near $0.159, with strength improving on higher closes. One might call this “strength,” though it’s more like “strength in the sense of ‘let’s hope this works.’”

For confirmation, MANA needs a daily close above $0.161. If that holds, upside targets open near $0.177, $0.20, and potentially $0.221, with extended resistance near $0.24 if GameFi momentum broadens. One might call this “extended resistance,” though it’s more like “extended hope.”

A drop back below $0.152 would weaken the breakout, while a move under $0.137 would invalidate the entire structure. One might call this “invalidation,” though it’s more like “a reminder that nothing is certain.”

MANA may be moving last, but whale behavior suggests it may not stay that way if the GameFi narrative continues to rebuild. One might say this is “rebuilding,” though it’s more like “rebuilding in the sense of ‘let’s see if this works.’”

Read More

2026-01-20 19:26