Blockchain Gaming Rides Wave of Bitcoin ETF Anticipation, Reveals Animoca Brands Founder
Summary:
Amidst the rising anticipation for a potential Bitcoin exchange-traded fund (ETF), there has been a renewed interest in blockchain gaming, according to Animoca Brands' founder, Yat Siu. He suggests that the growth in various cryptocurrencies has boosted investor faith in the Web3 gaming market by prompting more on-chain activity. Siu advises investors not to measure success solely on a project's token price but to consider a broader range of economic factors. Interestingly, a popular blockchain game, Axie Infinity, recorded significant increases in transaction activity and trading volume. Furthermore, Siu believes the approval of a Bitcoin ETF would legitimize the crypto industry, attract investments from traditional financial institutions, and permit independence from Bitcoin in the long run.
The escalating anticipation of a potential Bitcoin exchange-traded fund (ETF) has not only caused a surge in Bitcoin's value, but has also reignited interest in blockchain-based gaming, says Animoca Brands founder, Yat Siu. During an interview with Cointelegraph at the Hong Kong Fintech Week, Siu highlighted that spikes in various digital currencies have revived investor assurance in the Web3 gaming sphere, sparking a new wave of relevant on-chain operations. Siu emphasized that the value of tokens is a sign of confidence from users in terms of both ownership and usefulness, not just a means to earn money.
He underscored that confidence can wane when there is no growth in a sector or nation, irrespective of high prices. Siu drew attention to the challenge of quantifying investor confidence through a single measure, stating that the critical signs of expansion and trust in the GameFi arena can best be assessed through thorough scrutiny of on-chain activities. Siu conveyed that to assess a project's success, investors need to consider various aspects, similar to the parameters reviewed in a nation's economy. Supporting this viewpoint, over the past month, Animoca's most popular blockchain game, Axie Infinity, experienced a 50% surge in transaction operations and a 14% increase in trading volume, based on DappRadar data.
Siu maintained that the growth of the entire cryptocurrency ecosystem is still fundamentally tied to Bitcoin's development. However, many players in the crypto industry see their contributions as distinct and separate from the overall market. According to Siu, Bitcoin's utility, storage, and ownership greatly influence much of the value in the crypto ecosystem. He strongly believes the sanctioning of a Bitcoin ETF would significantly benefit the industry by adding validity and encouraging investment from traditional financial institutions.
Siu anticipates the crypto sector will eventually become independent of Bitcoin, similar to how the global economy ended reliance on the gold standard. He noted that despite the Web3 industry being worth over $1 trillion, its involvement accounts for a small fraction of the world's population. Siu concluded that market maturity simply takes time.
Published At
11/6/2023 5:52:00 AM
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