April 2, 2023


Non-fungible tokens (NFTs) may be the biggest driver of cryptocurrency adoption in Central Asia, South Asia and Oceania (CSAO), a new report has found.

according to By the Sept. 21 post by Chainalysis titled “Crypto Adoption Stable in South Asia, Soaring in the Southeast,” NFT-related actions accounted for 58% of all web traffic to crypto services from the region in the second quarter of 2022.

Meanwhile, another 21% of traffic this quarter went to P2E blockchain gaming sites, with major titles including Axie Infinity, STEPN, and Battle Infinity.

Chainalysis notes that P2E blockchain games are “closely related” to NFTs, as most P2E games offer in-game items in the form of NFTs that can be sold on marketplaces like MagicEden and OpenSea, meaning:

“NFTs are probably the largest cryptocurrency on-ramp in CSAO today.”

CSAO countries include 25 countries including India, Thailand, Vietnam, Australia, Singapore, the Philippines, and Indonesia, and are seven of the top 20 countries in the Chainalysis Crypto Adoption Index.

According to the web traffic heatmap, NFT-related websites account for the majority of web traffic in almost every country in the CSAO region, although blockchain games and entertainment also account for a sizable share of traffic.

Heatmap of web traffic in Central Asia, South Asia and Oceania region.Source: Chain Analysis

This “is not necessarily surprising: CSAO is a blockchain-based entertainment innovation hub,” Chainalysis noted, adding:

“For example, gaming-centric blockchain developers Polygon and Immutable X are based in India and Australia, while Axie Infinity and STEPN, the two biggest money-making games, operate in Vietnam and Australia, respectively.”

Vietnam topped the Chainalysis Crypto Adoption Index for the second year in a row, but the Philippines unexpectedly came in at second place after ranking 15th in the previous report.

“Both countries have similar growth drivers: P2E gaming and remittances,” explained the blockchain analytics firm.

On the other hand, according to Chainalysis, traffic to websites related to other topics such as decentralized exchange contracts has declined in recent quarters, possibly related to the bear market and the ongoing crypto winter.

related: Emerging Markets Lead Global Adoption Index: Chainalysis Report

The report also touched on cryptocurrency adoption in India and Pakistan, noting that while both countries ranked as the second and third largest cryptocurrency adopters in the world in 2021, they fell to fourth and fourth respectively this year. sixth.

Recent regulatory developments were cited as possible reasons for the change.

In January, Pakistan’s central bank and government proposed a ban on cryptocurrencies, while the Indian government imposed a 30 percent tax on all cryptocurrency gains in April and an additional 1 percent fee on every cryptocurrency transaction in July.