Blockchain Games Experience Resurgence Amid Bitcoin ETF Enthusiasm
The excitement surrounding the potential approval of a Bitcoin exchange-traded fund (ETF) isn’t just impacting the price of Bitcoin. It has also sparked renewed interest in blockchain games, according to Yat Siu, the founder of Animoca Brands.
Siu believes that token values play a significant role in building confidence among users and demonstrating utility. He emphasizes that it’s not just about money, but also about feeling secure in what you own.
When an industry or country fails to grow despite high prices, people can lose confidence. Siu emphasizes that growth and conviction in the GameFi sector can be measured by examining on-chain activity, rather than solely focusing on token prices.
Measuring Success Beyond Token Prices
Siu suggests that investors should consider multiple factors when evaluating the success of a project, similar to how one analyzes an economy. He explains that it’s not just about the price of one thing; it’s about the entire economic package.
The data supports Siu’s perspective. Over the past month, Axie Infinity, the most popular blockchain-based game in Animoca’s portfolio, experienced a 50% increase in transaction activity and a 14% rise in trading volume, according to DappRadar data.
Bitcoin’s Role in the Crypto Ecosystem
Siu asserts that despite different offerings in the crypto industry, its overall success is still fundamentally reliant on Bitcoin’s growth. He describes Bitcoin as the reserve currency of Web3 and believes that its usage, storage, and ownership underpin much of the value in the crypto ecosystem.
Siu is optimistic that the approval of a spot Bitcoin ETF will benefit the entire industry and bring legitimacy to the sector. It would also attract significant investment from traditional financial institutions.
However, Siu predicts that the crypto sector will eventually outgrow its dependence on Bitcoin, similar to how the international economy moved away from the gold standard. He envisions a future where different systems emerge to accommodate the growing population and economies.
Hot Take: Maturity in the Market
Siu concludes that despite the crypto industry’s size of over $1 trillion, only a small portion of the world’s population is involved in Web3. He believes that as the market matures, it will expand and evolve into more natural and efficient systems.
Source: CoinTelegraph
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