GameFi in 2026: Signs of Increased Momentum After 75% Drop

The GameFi industry is experiencing a turning point. After suffering an approximate 75% decline during 2025, the first months of 2026 show signs of greater recovery in this segment. On-chain data provided by NS3.AI reveal a significant rebound in activity on gaming-focused platforms like Base and Sei, where a higher concentration of transactions related to decentralized games is now observed.

Signs of Increased Activity on Gaming-Focused Chains

The leading blockchain networks for gaming are showing growth patterns in recent days. Base and Sei are leading this movement, with a notable increase in trading volume and developer participation. This dynamism contrasts with the bleak scenario that characterized much of 2025, when the industry faced massive liquidations and project abandonments.

Native GameFi tokens respond mixed to the current environment. Axie Infinity (AXS) is trading at $1.97 with a -9.19% change in 24 hours, while The Sandbox (SAND) is trading at $0.11 (-0.78% daily), and Decentraland (MANA) remains at $0.12 (-0.55%). Although these prices reflect short-term pressure, their relative behavior compared to the overall market shows signs of less capitulation compared to the massive losses of the previous year.

Recovery Led by Key Projects: Signs of Less Relative Decline

Axie Infinity, The Sandbox, and Decentraland are at the forefront of this nascent recovery. Despite facing immediate price resistance, these projects maintain renewed interest among developers and communities. The signs of decreased disinterest reflect a stabilization in sector sentiment after months of widespread pessimism.

Factors Behind the Rebound: Whale Accumulation and Technical Setups

Several elements converge to explain this shift. First, there is evidence of significant accumulation by large holders or “whales,” who have identified historically low prices as opportunities. Second, technical configurations show patterns suggesting the exhaustion of the downward move, particularly in the daily charts of the main tokens.

Community sentiment has also shown notable changes. After months of debate over the viability of blockchain games, the community recognizes advances in adoption, user experience improvements, and more sustainable tokenomics proposals. These combined factors generate signs of increased confidence observed in on-chain activity during January 2026.

End of the Bear Cycle or Premature Recovery?

The positive signs are undeniable, but the recovery is still in very early stages. Price volatility in AXS, SAND, and MANA reflects that investors remain cautious. However, consensus among analysts suggests that the most severe phase of the GameFi decline could be nearing its end.

The coming quarters will be decisive. If activity on chains like Base and Sei continues to grow and whale accumulation persists, signs of greater stability could solidify into a true sustained recovery of the GameFi segment.