Interest concerning a potential spot Bitcoin (BTC) exchange-traded fund (ETF) is not only increasing Bitcoin’s price. According to Yat Siu, Animoca Brands founder, it has also evoked a renaissance of interest in blockchain games.
Token Values Yield Confidence Among Blockchain Game Users
During the Hong Kong Fintech Week, he claimed several cryptocurrency price increases had re-evoked investor confidence in the Web3 gaming market. Additionally, they sparked another wave of associated on-chain activity. Specifically, he said that token values are a means of developing confidence concerning utility and users.
Besides having money, it creates confidence concerning what one owns. He also stated that if a nation or industry is not growing, individuals are more likely to lose confidence despite prices being high.
Boiling investor confidence down to one metric can be challenging. Nevertheless, Siu clarified that close monitoring of on-chain activity can effectively measure crucial growth and conviction indicators in the GameFi sector.
Siu said that investors must consider various factors instead of determining the success of a project’s token based on its price. This is similar to how a person would consider various inputs into a nation’s economy. He added that it is the complete economic growth rather than one specific element’s price.
Axie Infinity Trading Volume Surge
The DappRadar data backs Siu’s remarks, showing that Axie Infinity, the most-played blockchain-founded game on Animoca’s list, experienced a 50% rise in transaction activity over the past month. Additionally, its trading volume increased by 14%.
Siu is confident that the whole ecosystem is still primarily dependent on Bitcoin’s growth for its success. This is despite most crypto industry stakeholders picturing their offering as separate and unique from the rest of the market.
Siu claimed they are still in a gold-standard financial system where Bitcoin is the Web3’s reserve currency. Bitcoin’s usage, storage, and ownership reinforce significant value in the crypto ecosystem.
Siu believes approving a spot Bitcoin exchange-traded fund product will significantly benefit the industry. Additionally, it will boost the sector’s legitimacy while inviting numerous investments from traditional financial institutions.
Crypto Industry Projected to Outgrown Bitcoin Dependence
Siu envisaged the crypto industry will finally outgrow its dependence on Bitcoin as the de facto reserve asset, similar to how the global economy has done away with its reliance on the gold standard. More natural and effective systems are needed to grow economies and populations.
Siu claimed that despite this being the direction they are headed, a tiny population across the globe is involved in Web 3. This is despite it being more than $1T in size. He concluded that it is only a matter of maturity in the market.
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