AXS Token Drops 12% After Rally; Market Reacts to Axie Infinity’s Tokenomics and Liquidity Shift

Axie Infinity (AXSUSDT) experienced a significant price decline of 12.39% in the last 24 hours, dropping from an opening price of 2.929 to 2.566. This reversal follows a strong rally driven by major tokenomics reforms, including the introduction of bAXS and the Axie Score system, which initially boosted market sentiment and led to increased trading activity and short position liquidations. The surge in price and volume earlier this week was attributed to these updates and broader GameFi sector enthusiasm, but recent concerns over thin liquidity and rising exchange balances have contributed to heightened volatility and a pullback in price.

Currently, AXSUSDT is trading at 2.566 with a robust 24-hour trading volume, reflecting sustained market interest despite the recent correction. The token has seen notable activity, outperforming many peers over the past week, but faces short-term volatility as traders react to new ecosystem developments and shifting liquidity conditions.