Non-fungible tokens (NFTs) could be the biggest driver of crypto adoption in Central, South Asia and Oceania (SWAC), according to a new report.
NFT-related stocks accounted for 58% of all web traffic to cryptocurrency services in the region in the second quarter of 2022, according to a Chainanalysis article dated September 21 titled “Crypto Adoption Stades in South Asia, Soars in Southeast.”
Meanwhile, an additional 21% of traffic in the quarter went to blockchain play-to-earn (P2E) gaming websites, including major titles including Axie Infinity, STEPN, and Battle Infinity.
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Chainanalysis notes that P2E blockchain games are “intensely tied” to NFTs, as most P2E games offer in-game items in the form of NFTs that can be sold on marketplaces like MagicEden and OpenC, meaning:
“NFTs are probably the biggest on-ramp for cryptocurrencies in CSAO today.”
SWAC countries include India, Thailand, Vietnam, Australia, Singapore, the Philippines and Indonesia, among 25 others, and seven of the top 20 countries in Chainalysis’ Crypto Adoption Index.
According to a web traffic heatmap, NFT-related websites accounted for the majority of web traffic in almost all countries of the SWAC region, although blockchain games and entertainment also recorded a significant share of traffic.
Chainanalysis notes that this is “not necessarily surprising: CSAO is a hub of innovation in blockchain-based entertainment,” adding:
“Gaming-focused blockchain developers Polygon and Immutable X are headquartered in India and Australia, for example, and Axie Infinity and STEPN, two of the largest play-to-win games, operate in Vietnam and Australia, respectively. Australia.”
Vietnam topped the Chainalysis Cryptocurrency Adoption Index for the second year in a row, but the Philippines made a surprise appearance in second place after finishing 15th in the latest report.
“These two countries have similar growth engines: play-to-earn (P2E) games and remittances,” explained the blockchain analyst firm.
On the other hand, traffic to websites related to other things like decentralized exchanges has been declining in recent quarters, according to Chainanalysis — which it says is likely related to the bear market and ongoing crypto winter.
Related: Emerging Markets Lead Global Adoption Index: Chainanalysis Report
The report also touched on crypto adoption in India and Pakistan, noting that while both ranked second and third among global cryptocurrency users in 2021, both countries dropped to fourth and sixth, respectively.
Recent regulatory developments have been listed as possible reasons for the change.
In January, Pakistan’s central bank and government recommended a crypto ban, while the Indian government implemented a 30% tax on all crypto income in April and an additional 1% fee on every crypto transaction in July.