After a harsh 2025 that saw GameFi tokens fall by approximately 75%, early 2026 is showing renewed signs of stabilization with increased on-chain activity on gaming-focused chains like Base and Sei. Key GameFi tokens Axie Infinity (AXS), The Sandbox (SAND), and Decentraland (MANA) are leading the recovery, driven by improved community sentiment, technical setups, and whale accumulation. Although the recovery is in its early stage, these developments indicate that the worst phase of the GameFi downturn may be passing.