Spartan Black, a partner at the Spartan Group, a blockchain investment and consultancy firm based in Singapore, says a growing crypto sector might spark a broad market surge if Bitcoin can trade above $40,000 once more.
After a year of outstanding growth, Spartan Black informs his nearly 30,000 Twitter followers that decentralized gaming currencies are on the point of being phased out.
The investor points to the popularity of decentralized gaming projects like Axie Infinity (AXS) and Sandbox (SAND), which he claims are growing at a rapid pace, similar to how decentralized finance (DeFi) assets exploded last summer as people sought out decentralized lending, borrowing, and staking options.
“DeFi summer 2.0 is rapidly transitioning into Gaming summer. Adoption stats for crypto games like Axie infinite and Sandbox are eerily similar to DeFi TVL growth a year ago.”
Axie Infinity is a virtual trading and battling game in which players produce token-based animals known as “Axies,” which may be acquired and exchanged as non-fungible tokens (NFTs).
The Sandbox is a virtual environment where players can create, own, and interact while selling their in-game objects and experiences using NFTs and the main utility token SAND on the Ethereum blockchain.
Axie Infinity stated last month that it now has 350,000 daily users, and The Sandbox claims to have achieved one million monthly active users.
“BTC $40,000 is a crucial mark that most traders are keeping an eye on. If we break through this level, the bull market will resume, and a large amount of money will flow in. Meanwhile, all eyes are on AXS, SAND, and to a lesser extent, FLOW.”
According to Spartan Black, many significant crypto funds are underexposed to gaming tokens and decentralized social networks.
“Moreover, most crypto funds have little to no exposure to this asset class, and they will have to increase their exposure, again within a small group of assets. This will drive up the value of these assets beyond what we saw last summer during DeFi.”
Spartan Black believes that once these funds begin to invest in gaming assets and larger crypto exchanges like Coinbase add them on their systems, the value of this class of tokens will skyrocket.