SAND, AXS, MANA Lead the Charge – But This Small-Cap Surge Isn’t Real Strength

META is back and has pushed SAND, AXS, and MANA higher. But network growth and liquidity trends still look weak.

The market leadership appears to have undergone a massive change since January 9th. Data shows that several small caps are taking charge while larger cryptocurrencies consolidate, driven by the resurgence of the META narrative.

Three tokens, in particular, have stolen the spotlight this month.

“Pocket Rally”

Altcoin Vector explained that the latest trend is not a sign that the overall market is getting healthier, amidst falling network growth and weaker liquidity. In fact, the current rally is being touted as a “pocket rally,” fueled by speculation on thin liquidity rather than fundamental structural growth. Three tokens – SAND, AXS, and MANA- are at the center of this movement.

The platform found that Axie Infinity (AXS) is leading following tokenomic adjustments designed to reduce inflation, sparking renewed speculative interest across the gaming and metaverse ecosystem. Altcoin Vector’s Altcoin Quadrant shows that most altcoins remain in the “Accumulation” phase, while META assets have surged into “Scalp” territory, thereby marking them as outliers.

When comparing SAND and AXS, the latter demonstrated stronger performance as its Impulse metric stayed positive and steadily recovered after a brief cooldown. This indicates market recognition of Axie Infinity’s focus on ecosystem sustainability.

META Rally Remains a Speculative Play

Despite the momentum, Altcoin Vector warned that speed does not equal stability. Small Caps are currently leading due to “fast capital” chasing immediate returns, but foundational growth remains absent. For a durable rally, adoption must rise, and dominance return to Bitcoin (BTC) and Ethereum (ETH).

“Ride the META narrative, but proceed with caution. For a sustained long-term rally, growth must stem from infrastructure and adoption, not just narrative. Without a solid base in core assets, this remains a speculative play.”

AXS is trading at $2.69. Over the past month, the token appreciated by 224.4%. Next up was MANA, which saw a monthly increase of nearly 47% and is currently trading at $0.169. Meanwhile, SAND was found exchanging hands at $0.157 after a more than 41% surge during the same period.