While meme coins grabbed headlines with a 23% sector surge in early 2026, adding $8 billion to reach $47.7 billion market cap, the real action has shifted to a GameFi token called Power Protocol (POWER). PEPE jumped 65%, DOGE 20%, and SHIB nearly 20% that week, but as those cooled, POWER rocketed 370% in seven days, hitting over $2 before a pullback. This isn’t just noise in a muted market; it’s a signal of deeper GameFi momentum that’s been building for two months. Check our latest on meme coins first week February 2026 for context on that frenzy.
Axie Infinity is up 72% year-to-date, but POWER’s explosive move demands scrutiny. Launched December 5, 2025, at $0.08, it’s now up over 2,000% cumulatively. In a market questioning sustainability, as seen in recent institutions calling bear market crypto 2026, why is this GameFi token defying gravity?
Why Power Protocol Is Capturing the GameFi Spotlight
Power Protocol isn’t another hype-driven play; it’s blockchain infrastructure unifying fragmented Web3 gaming economies under one token. Its flagship, Fableborne from UK studio Pixion Games, drew over 400,000 beta players, peaked at 108,000 daily actives, and pulled in $21.5 million in NFT presale revenue pre-launch. This mobile-first action RPG exemplifies how GameFi is evolving beyond speculative pumps.
The surge ties directly to real developments, not just chart patterns. On February 24, BITKRAFT Ventures dropped a $3 million investment, elevating total ecosystem funding to $15.5 million. This respected gaming VC’s backing lent credibility, sparking a 610% run to February 26 highs. Yet, in a sector prone to fleeting rallies, questions linger about staying power amid broader crypto market downtrends.
GameFi’s two-month steadiness contrasts meme volatility, positioning POWER as a potential leader. But sustainability hinges on execution, not just funding.
The Funding Catalyst and Ecosystem Build
BITKRAFT’s announcement wasn’t isolated; it capped a series of milestones for Power Protocol. The investment targets scaling the blockchain layer and accelerating Fableborne, which already boasts proven traction. Over 400,000 beta users signal genuine interest, far from the ghost towns plaguing some GameFi projects. Presale revenue of $21.5 million underscores demand before token availability, a rare feat.
This capital infusion brings total funding to $15.5 million, fueling infrastructure that links disparate gaming economies. Developers can now leverage a unified token for seamless interoperability, addressing a core Web3 gaming pain point. Compare this to recent DeFi exploits, and Power Protocol’s focus on secure, scalable gaming stands out. Early metrics suggest it’s not vaporware.
Critically, BITKRAFT’s track record in gaming VCs adds weight. Their portfolio includes proven hits, implying rigorous due diligence. For traders eyeing GameFi revival, this isn’t blind faith but backed potential.
Fableborne’s Role in Driving Adoption
Fableborne’s success is the linchpin. As a mobile RPG, it taps billions of smartphone gamers, lowering entry barriers versus PC-heavy titles. Peak daily actives of 108,000 rival established games, hinting at viral potential. NFT presales converting to real revenue pre-token launch prove monetization works.
Pixion Games’ UK base brings polished development standards, contrasting rug-pull risks in GameFi. The game’s action mechanics blend skill and blockchain rewards, fostering retention. In a market shifting from memes, as per our meme coins to watch January 2026 analysis, Fableborne positions POWER for organic growth.
Long-term, unified economies could standardize GameFi, much like Ethereum did for DeFi. If Fableborne scales post-launch, POWER’s utility surges.
Technical Signals Flashing Caution Amid the Rally
POWER’s 370% weekly gain looks impressive, but dig into charts and on-chain data reveals cracks. The 4-hour consolidation mimics a bull flag, yet bearish divergence looms large. Higher highs in price contrast lower RSI highs from February 25-27, signaling waning momentum. Fewer aggressive buyers at peaks often precede pullbacks.
This isn’t unique to POWER; leveraged markets amplify such signals. Recent short liquidations hit $15.62 million in 24 hours versus $2.77 million longs, a 6:1 ratio fueling the squeeze. But with the market muted, as in ongoing Ethereum bull trap debates, sustainability is questionable. Whales add another layer of concern.
Traders ignoring these risks chase hype at their peril. Let’s break down the data.
Bearish Divergence and Momentum Fade
RSI’s lower high during price’s higher high is textbook bearish divergence. On 4-hour charts, this pattern has triggered 20%+ corrections in similar setups. Buyers’ exhaustion at elevated levels means any catalyst could unwind gains. POWER’s post-peak 20% drop already echoes this.
Smaller timeframes amplify the signal, common in high-beta assets like this GameFi token. Historical parallels in GameFi show divergences preceding 30-50% retraces. Without RSI flipping bullish, upside remains capped.
Combine with fading volume, and the rally feels more squeeze-driven than demand-led.
Whale Selling and Flow Collapse
On-chain, whales (1-10 million POWER) dumped nearly 50%, from 14.66 million to 7.2 million since February 14. Exchange outflows cratered 99%, from 2.74 million to 14,800 tokens. No fresh buyers sustaining the move points to short covering, not organic bids.
This mirrors patterns in overheated alts, per Santiment data. Smaller whales offloading while price climbs screams distribution. Recent Ethereum whale exits show similar profit-taking. Spot demand must return for stability.
Liquidation imbalance confirms: shorts crushed, longs safe. Sentiment shift post-BITKRAFT sparked it, but mechanics drove the bulk.
Bullish Counterpoints: Volume and Big Whale Accumulation
Not all signals scream sell. The 20% correction came on low red volume, indicating weak seller conviction. This often marks exhaustion rather than capitulation, leaving room for bounces. Long liquidations unwound positions without mass dumping.
Larger whales (10-100 million POWER) net accumulated, growing from 346.28 million to 402.92 million. This floor has held against smaller sales, providing structure. In GameFi’s choppy waters, such divergence between cohorts hints at smart money confidence.
Fib levels offer targets: close above $2.09 eyes $2.88, then $3.66. Below $1.61 weakens bulls; $1.08 invalidates. Broader rotation, like altcoins all-time highs 2026, will decide.
Low Volume Pullback Signals Resilience
Red bars stayed muted during the drop, unlike high-volume dumps signaling distribution. This suggests profit-taking, not panic. Historical GameFi corrections on low volume rebound 40%+ on average when supported.
Unwinding longs post-squeeze explains the move without bearish intent. If volume picks up green, momentum flips. Watch for this in context of crypto whales buying January 2026.
Large Whales Building a Floor
Biggest holders added steadily, countering smaller sales. Their 16% stash increase provides downside protection. In volatile markets, this accumulation often precedes legs up, as seen in past GameFi cycles.
Santiment charts confirm net buying through peaks. If they hold, smaller whales’ dumps become noise. Ties into GameFi narrative strength versus meme fades.
What’s Next for This GameFi Token
Power Protocol embodies GameFi’s crossroads: VC fuel, game traction, leveraged fireworks. A clean break above $2.09 revives bulls toward $3+, if alt rotation cooperates. Failure invites deeper tests at $1.61 or lower, exposing squeeze fragility.
Bigger picture, GameFi’s revival challenges meme dominance, but execution trumps hype. Watch whale flows, volume, and Fableborne metrics. In 2026’s chop, GameFi tokens like POWER offer narratives beyond speculation, yet risks remain. Broader sentiment, from token unlocks February 2026 to macro shifts, will sway outcomes. Trade smart, not on FOMO.
