Spot Bitcoin EFF Encouraging Zest Reigns For Blockchain Games: Yat Siu
Enthusiasm in the potential space of a Bitcoin (BTC) exchange-traded fund (ETF) isn't just boosting the price of Bitcoin — it's also fueled a resurgence in blockchain plays, according to Yat Siu, founder of Animoka Brands.
Speaking to Cointelegraph at Hong Kong FinTech Week, Siu said that the rise in prices of several cryptocurrencies has rekindled investor confidence in the Web3 gaming market and sparked a new wave of activity on the chain.
“Token values are a way of trusting users and consumption. Not only for monetization, but also for confidence in ownership.”
“If an industry or country does not grow, people may lose confidence even though the price may be high,” Siu said.
Busy @animocabrands fam & frens booth including @TheSandboxGame @MocaverseNFT @WreckLeagueHQ @the_phantom_g @AnichessGame and more at #HKFintechWeek2023 Hong Kong is determined to be the #web3 hub. pic.twitter.com/6spuYH7Jhy
— Yat Siu (@ysiyu) November 3, 2023
Distilling investor confidence into a single metric can be difficult, but Siu explained that key indicators of growth and confidence in the GameFi sector are best measured by looking at on-chain activity.
Rather than just looking at the value of projects to measure success, Siu says investors need to consider different factors — just like how one would look at the different inputs in a country's economy.
“It's not necessarily just the price of something. It is the entire economy,” he added.
The data backs up Siu's comments. Blockchain-based game Axie Infinity, the most played blockchain-based game on Animoca's list last month, saw a 50% increase in transaction activity and a 14% jump in transaction volume, according to Dapradar data.
Siu believes that even though many crypto industry players think of their offerings as unique and different from the rest of the market, the entire crypto ecosystem is still fundamentally based on the growth of Bitcoin.
Related: Web3 gaming investors more ‘chosen' in crypto winter – Animoca's Robbie Yung
“We are still in a gold standard financial ecosystem where Bitcoin is the reserve currency of Web3. How Bitcoin is used, how it is stored and who owns it, underpins a lot of value in the crypto ecosystem,” he said.
Siu is convinced that the approval of a Bitcoin ETF product will be an incredible benefit for the industry as a whole and will increase the legitimacy of the sector while inviting new investment from traditional financial institutions.
Siu predicts that the global economy will shed its dependence on the gold standard in the same way that the crypto sector will eventually surpass its dependence on Bitcoin as a de-facto reverse asset.
“As the population and economy grow, we need different systems that are more natural and efficient. To me, that's where we're headed. But we're still talking about a very small percentage of the world's population participating in Web3, even though it's over $1 trillion.
“It's just a matter of maturity in the market.”
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