India Tops Crypto Adoption in Asia; NFT, Web3 Gaming Rise: Chainalysis

The Web3 adoption in Asia is banking on the rage around non-fungible tokens (NFTs). A recent Chainalysis report highlighted that in the second quarter of 2022, 58 percent of web traffic from Asian nations to crypto services was NFT-related. Another 21 percent traffic was related to play-to-earn blockchain games. The co-relation between the two interest points is not a coincidence. These play-to-earn games often reward players with cryptocurrencies and NFTs. Evidently, digital collectibles are garnering intrigue in the world's largest continet, Asia.

The combined region of Central & Southern Asia and Oceania (CSAO) is the third largest cryptocurrency market this year. Residents of these nations generated $932 billion (roughly Rs. 75,09,170 crore) in cryptocurrency value from July 2021 to June 2022.

NFTs and blockchain games have emerged as popular tools via which traffic around crypto is rushing in from the CASO regions. In terms of gaming, Vietnam and Phillipines have ranked as top two.

“India continues to lead CSAO in unweighted crypto activity, receiving $172 billion (roughly Rs. 13,85,812 crore) in cryptocurrency value from July 2021 through June of this year. Thailand, Vietnam, Australia and Singapore follow close behind with each receiving more than $100 billion (roughly Rs. 8,05,685 crore),” the Chainalysis report said.

Along with games and NFTs, remittances are also a major reason why countries in the CSAO regions are witnessing a boom in crypto adoption.

“Pakistan, India, and Bangladesh each have over $20 billion (roughly Rs. 1,61,161 crore) remittance markets, and blockchain-based payment providers are beginning to disrupt traditional intermediaries,” the report noted.

While the lack of clear crypto regulations in India and Pakistan impact the pace of crypto and Web3 adoption, the speed of innovation in the sectors remain smooth.

Amid the legal uncertainities, India and Pakistan that were the second and third highest adopters of cryptocurrency globally, respectively have fallen to fourth and sixth ranks respectively.