This New Crypto Sector Could Drive Broad Market Rally, Says Partner at Top Digital Asset Investment Firm
Spartan Black, a partner at the Singapore-based Spartan Group, a blockchain investment and advisory firm, believes an emerging crypto sector could ignite a broad market rally – provided Bitcoin can trade above $40,000 again.
Spartan Black tells his nearly 30,000 Twitter followers that decentralized gaming tokens are on the verge of a send-off after having exhibited impressive growth over the past year.
The investor highlights the popularity of decentralized gaming projects such as Axie Infinity (AXS) and Sandbox (SAND), which he says are growing at an impressive rate, much like decentralized finance (DeFi) assets did last summer when the whole sector exploded as people sought out decentralized lending, borrowing and staking options.
“DeFi summer 2.0 is quickly evolving into Gaming summer. Crypto games like Axie infinity and Sandbox are seeing adoption metrics that are reminiscent of DeFi TVL growth a year ago.”
AXS is the governance token of Axie Infinity, a virtual trading and battling game where gamers breed token-based creatures known as “Axies” that can be collected and traded as non-fungible tokens (NFTs).
The Sandbox is a virtual world where gamers build, own and interact, monetizing their in-game items and experiences on the Ethereum blockchain using NFTs and the main utility token SAND.
This month, Axie Infinity announced that it is seeing 350,000 users per day, and The Sandbox claims it now has reached one million monthly active users.
Spartan Black argues that if Bitcoin can conquer $40,000, then AXS and SAND, along with gaming and social network-oriented Flow (FLOW), will witness strong rallies.
“BTC $40,000 is the key level most traders are watching. If we break this level, the bull market is back and a ton of capital will pile in. In the meantime all the attention is on AXS, SAND and to a lesser extent FLOW.”
Spartan Black notes that many large crypto funds are underexposed to gaming tokens and decentralized social networks.
“In addition, most crypto funds have little to no exposure to this category and they will have to add on the exposure, again among a relatively small group of assets. This will inflate the valuation of these assets beyond what we witnessed during DeFi summer.”
Spartan Black predicts that as these funds begin investing in gaming assets, and as larger crypto exchanges such as Coinbase list them on their platforms, this class of tokens could soar even further.
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