MANILA, Philippines — The Philippines is expected to soon experience another Axie Infinity phenomenon, an event characterized by the massive adoption of cryptocurrency due to positive sentiment toward these digital assets.
Local cryptocurrency exchange PDAX is expecting the scheduled bitcoin halving next month will spawn a new batch of traders, just like what happened in 2021 with then popular play-to-earn blockchain-based game where users earned tokens as rewards.
“I think this halving incident could lead to the greatest adoption of cryptocurrencies in the Philippines. I guess it is [another] Axie Infinity,” PDAX CEO and founder Nichel Gaba said in a recent event in Makati.
In bitcoin halving, which happens every four years, production of new digital assets is slowed down to drive up their value.
This upcoming event is seen to lift bitcoin price to around P4 million, along with the recent approval of bitcoin exchange-traded funds in the United States that has enabled the digital assets to be traded via traditional regulated securities exchanges.
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Gaba observed the transaction volume at their platform growing by about four times recently.
Apart from optimism about these assets, Gaba said more Filipinos are likely to get into crypto because now, trading these digital assets has become more accessible due to virtual asset service providers (VASP).
Access to crypto
“This is the first halving event when around 80 million Filipinos have access to crypto on an app on their phone,” he said.
VASP is an entity that facilitates the transfer or exchange of virtual assets, which are digital units that can be traded online and used for payment or investment purposes. The Bangko Sentral ng Pilipinas has issued VASP licenses to 17 entities, including PDAX.
For Filipinos who plan to buy into crypto, Gaba said, “The best advice is to do cost-averaging and to invest only the amount that you have the appetite to lose.”
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Cost-averaging refers to investing the same amount of money over a certain period of time regardless of the price of the asset, which can hedge investors from market volatility.
The popularity of play-to-earn games like Axie Infinity has driven the adoption of crypto in the Philippines, according to blockchain analysis firm Chainalysis.
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It noted that the Philippines made up about 40 percent of the player base of Axie Infinity at one point. The game even became a source of income for some Filipinos during the pandemic when the unemployment rate was high due to strict lockdowns.