The anticipation surrounding the potential approval of a Bitcoin exchange-traded fund (ETF) is not only driving up Bitcoin prices but also fueling a renewed enthusiasm for blockchain-based games, according to Animoca Brands founder Yat Siu.
Speaking during Hong Kong Fintech Week, Siu emphasized that the recent price surges in various cryptocurrencies have rekindled investor confidence in the Web3 gaming sector, resulting in increased on-chain activity.
Siu highlighted that token values play a crucial role in instilling confidence among users and providing utility beyond mere monetary gains.
He stressed that confidence in what one owns is just as essential as the financial aspect of investments.
Siu pointed out that when an industry or a country fails to grow despite high prices, people can lose faith in it.
Measuring investor confidence is not a straightforward task, but Siu argued that assessing growth and conviction in the GameFi sector is best achieved by examining on-chain activity closely.
Instead of relying solely on token prices to gauge success, he urged investors to consider various factors, similar to assessing a country’s economy through multiple indicators.
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Recent data backs Siu’s assertions. Over the past month, Axie Infinity, the most popular blockchain-based game in Animoca’s portfolio, witnessed a 50% increase in transaction activity and a 14% rise in trading volume, as reported by DappRadar.
Siu emphasized that the entire crypto ecosystem remains heavily reliant on Bitcoin’s growth for its overall success, even as many crypto industry players view their offerings as distinct and separate from the broader market.
He described Bitcoin as the reserve currency of Web3, stating that how it’s used, stored, and owned underpins much of the crypto market’s value.
Siu expressed confidence that the approval of a spot Bitcoin ETF would significantly benefit the entire industry by adding legitimacy and attracting new investments from traditional financial institutions.
He predicted that the crypto sector would eventually outgrow its dependence on Bitcoin, similar to how the global economy moved away from the gold standard.
As populations and economies continue to expand, Siu believes that the crypto industry will evolve into more natural and efficient systems.
However, he acknowledged that despite its substantial $1 trillion size, Web3 engagement remains limited to a relatively small global population.
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