The England international has hailed the January arrivals of Landon Donovan and Darron Gibson, among others, as the Toffees attempt to climb into the top half of the league table
The Toffees welcomed American forward Landon Donovan back on a short-term loan deal, while winger Steven Pienaar arrived from Tottenham until the end of the season.
Everton also signed £5.5 million striker Nikica Jelavic from Rangers, with midfielder Darron Gibson moving to Merseyside from Manchester United earlier in the window.
Baines says the arrivals have boosted morale as David Moyes' side fight for a European spot during the second half of the Premier League season.
"I think [January's transfer dealings] lifted everyone associated with the club, it certainly did from what we see within the club, it gave everyone a boost," the left-back told Evertontv.
"It was massive, in particular, what that 24 hours did for us with the two new lads coming in [on deadline day] and the win over Manchester City.
"We needed it and it does lift people. It is hard to articulate exactly why that is at times but to get the new bodies in really helped.
"It was a productive period for the club and we certainly feel as though we are on the up again."
Everton host Chelsea on Saturday afternoon and Baines admits his side, who currently sit in 11th place in the Premier League, must improve their home form to climb into the top half of the table.
"Our home form has not been good enough and we knew that," he said.
"Things have not been great this season so it was nice to win that one [against Manchester City] and it is important we keep the momentum going.
"We want to win all our home games and we know we have to work hard and pick our form up.
"Hopefully that will be the case as we do feel as if we are on an upward curve now."