- Siu stated that the price increases of many cryptocurrencies rekindled investor confidence in the Web3 gaming market and initiated a new wave of related on-chain activities.
- The most played game, Axie Infinity, experienced a 50% increase in transaction activity and a 14% increase in transaction volume according to DappRadar data.
- Yat Siu believes that the crypto sector will one day surpass its reliance on Bitcoin, as well as its ties to the world economy’s gold standard, as the cryptocurrency sector continues to grow.
Animoca Brands founder Yat Siu delves into the significance of a potential Bitcoin exchange-traded fund (ETF) for the ecosystem.
Yat Siu Discusses the Effects of Bitcoin ETFs
Animoca Brands founder Yat Siu stated that the enthusiasm surrounding a potential Bitcoin exchange-traded fund (ETF) not only boosts the price of Bitcoin but also rekindles excitement for blockchain games.
Siu noted that the price increases of many cryptocurrencies rekindled investor confidence in the Web3 gaming market and initiated a new wave of related on-chain activities:
“The value of tokens is one way to build trust in terms of users and utility. It’s not just about owning money, but also feeling confident about what you own.”
Siu continued, “If an industry or a country is not growing, people can lose trust, even if prices are high.” Reducing investor confidence to a single metric can be challenging. However, Siu explained that growth and sentiment indicators in the GameFi sector can be best measured by closely examining on-chain activity.
Siu argued that measuring the success of a project requires investors to consider various factors, similar to how different inputs in a country’s economy are evaluated.
Data supports Siu’s statements. Axie Infinity, the most played game among Animoca’s blockchain-based games in the past month, saw a 50% increase in transaction activity and a 14% increase in transaction volume, according to DappRadar data.
Ecosystem Growth Independent of Bitcoin
Siu believes that the crypto ecosystem’s fundamental success still relies on the growth of Bitcoin, despite the fact that many players in the crypto sector consider their offerings to be distinct and separate from the rest of the market. Siu stated:
“We are still in a financial ecosystem that has a gold standard, which is Bitcoin, Web3’s reserve currency. How Bitcoin is used, stored, and who owns it actually underpins a lot of value in the crypto ecosystem.”
Siu anticipates that the approval of a physical Bitcoin ETF product would be incredible support for the sector and bring a sense of seriousness, inviting new investments from traditional financial institutions. Siu believes that the crypto sector will one day surpass its reliance on Bitcoin, as well as its ties to the world economy’s gold standard:
“As populations and economies grow, we need more natural and efficient different systems. I think that’s where we’re going. But, we need to remind ourselves that we’re a tiny fraction of the world’s population that is involved in Web3, and it’s already over a trillion dollars in size.”
