According to Cointelegraph: Yat Siu, founder and CEO of Animoca Brands, has indicated that the excitements around a potential spot Bitcoin exchange-traded fund (ETF) are not only driving up the price of Bitcoin but also propelling a renewed interest in blockchain gaming.
During Hong Kong Fintech Week, Siu told Cointelegraph that the surge in many cryptocurrencies has boosted investor optimism in the Web3 gaming market, triggering a new wave of connected on-chain activity.
“Token values are confidence builders concerning users and utility. They're not just about money—it's also feeling confident about what you own," Siu explained.
Explaining the indicators of growth and belief in the GameFi sector, Siu mentioned that investor confidence could not be reduced to a single metric. Instead, he noted that it was best to examine the on-chain activity closely. He compared this to studying different inputs in a country's economy to gauge a project's success instead of focusing solely on a token price.
Siu's commentary aligns with recent data. In the last month, Axie Infinity, the most popular blockchain-based game in Animoca's portfolio, has seen a 50% increase in transaction activity and a 14% rise in trading volume, according to DappRadar data.
Despite the distinctive offerings of several crypto industry players, Siu believes the overall success of the entire crypto ecosystem remains fundamentally dependent on Bitcoin's growth.
He also predicted that the approval of a spot Bitcoin ETF would not only enhance legitimacy in the sector, but also attract significant new investment from traditional financial institutions. Siu envisions the crypto sector will ultimately outgrow its reliance on Bitcoin, akin to how the international economy moved away from the gold-standard.
As the crypto market matures, he believes it will eventually cater to a larger swath of the population despite currently only reaching a small portion, even with a valuation exceeding $1 trillion.
