Enthusiasm surrounding a possible spot Bitcoin (BTC) exchange traded fund (ETF) isn’t just driving up the price of Bitcoin — it’s also sparked a resurgence of enthusiasm for blockchain games, says Animoca Brands founder Yat Siu.
Speaking to Cointelegraph at Hong Kong Fintech Week, Siu said the price increases of many cryptocurrencies reignited investor confidence in the Web3 gaming market as well as sparking a fresh wave of related on-chain activity.
“If an industry or a country isn’t growing, despite the fact that prices might be high, then people can lose confidence,’ Siu said.
Busy @animocabrands fam & frens booth including @TheSandboxGame @MocaverseNFT @WreckLeagueHQ @the_phantom_g @AnichessGame and more at #HKFintechWeek2023 Hong Kong is clearly determined to becoming the #web3 hub! pic.twitter.com/6spuYH7Jhy
— Yat Siu (@ysiu) November 3, 2023
It can be difficult to boil investor confidence down to a single metric, however Siu explained the key indicators of growth and conviction in the GameFi sector can be best measured by looking closely at on-chain activity.
Rather than looking solely at the price of a projects’ token to gauge its success, Siu says that investors need to take a variety of factors into account — much like how one would look at the different inputs in a country’s economy.
“It’s not necessarily just the price of one particular thing. It’s the whole economic parcel,” he added.
The data supports Siu’s comments. Over the last month, the most played blockchain-based game in Animoca’s roster, Axie Infinity, witnessed a 50% increase in transaction activity and a 14% jump in trading volume, according to DappRadar data.
Siu believes the entire crypto ecosystem is still fundamentally reliant on the growth of Bitcoin for its overall success despite many crypto industry players imagining their offerings as unique and separate from the rest of the market.