The Excitement Around Spot Bitcoin Etfs Has Reignited Interest In Blockchain Games.

Animoca Brands CEO Yat Siu stated that the excitement around spot Bitcoin ETFs has not only boosted Bitcoin prices but also rekindled interest in blockchain games, leading to increased activity in the GameFi sector.

Animoca Brands founder Yat Siu mentioned that the anticipation of a spot Bitcoin (BTC) exchange-traded fund (ETF) not only boosted Bitcoin prices but also rekindled interest in blockchain games.

Siu stated that the price increase in many cryptocurrencies has revived investor confidence in the Web3 gaming market, leading to a new wave of activity in the sector.

"Token prices are one way to build trust in terms of users and benefits," Siu continued. "Having money alone is not enough; you also need to have confidence in what you have. Even if prices are high, if an industry or country is not growing, people can lose confidence."

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

While it is challenging to reduce investor confidence to a single measure, Siu emphasized that growth and belief in the GameFi sector can be measured by closely examining on-chain activities.

Siu mentioned that it is insufficient to measure the success of a project solely by token price, and investors should look at different data, just like when assessing a country's economy, and consider various factors. He added:

"What matters is not just the price of a specific thing. It's the entire economy." Data seems to support Siu's comments. According to DappRadar data, last month, Axie Infinity, one of Animoca's blockchain-based games, was the most played game. There was a 50% increase in transaction activity, and a 14% rise in transaction volume.

Siu stated that many players in the crypto industry see the offers presented to them as unique and separate from the rest of the market. However, he believes that the entire crypto ecosystem still fundamentally depends on the growth of Bitcoin. He also added:

"Bitcoin is still the gold-based reserve currency of the Web3 ecosystem. How Bitcoin is used, stored, and owned actually constitutes the fundamental value in the crypto ecosystem."

Siu expressed that the approval of a spot Bitcoin ETF is a great opportunity for the industry, and with new investments coming from traditional financial institutions, confidence in the sector will increase. He also believes that the crypto sector will eventually overcome its dependence on Bitcoin.

"As populations and economies grow, the need for more natural and efficient systems will increase. In my opinion, where we're headed, despite being over a trillion dollars in size, there are still very few people involved in Web3," Siu said, adding:

"As the market matures, this issue will be overcome."