According to a new report, non-fungible tokens (NFTs) could be the main driver of cryptocurrency adoption in Central, South Asia and Oceania (SWAC).
According to a September 21 Chainalysis article titled “Crypto Adoption Steadies in South Asia, Soars in the Southeast,” NFT-related stocks accounted for 58% of all web traffic directed to cryptocurrency services in this region in Q2 2022. .
Meanwhile, a further 21% of traffic in the quarter went to play-to-earn (P2E) blockchain gaming websites, with major titles including Axie Infinity, STEPN, and Battle Infinity.
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Chainalysis noted that P2E blockchain games are “intricately tied” to NFTs, as most P2E games offer game items in the form of NFTs that can be sold on markets such as MagicEden and OpenSea, which means:
“NFTs are perhaps the largest cryptocurrency ramp in CSAO today.”
SWAC countries include India, Thailand, Vietnam, Australia, Singapore, Philippines, and Indonesia, among other 25, and are home to seven of the top 20 countries in the Chainalysis Crypto Adoption Index.
According to a web traffic heatmap, NFT-related websites accounted for the majority of web traffic in nearly every country in the SWAC region, although blockchain gaming and entertainment also recorded a significant share of traffic.
Chainalysis noted that this “isn’t necessarily surprising: CSAO is a hub for innovation in blockchain-based entertainment,” adding:
“Game-centric blockchain developers Polygon and Immutable X are based in India and Australia, for example, and Axie Infinity and STEPN, the two largest play-to-win games, are operated in Vietnam and Australia, respectively. In Australia.”
Vietnam topped the Chainalysis Cryptocurrency Adoption Index for the second consecutive year, but the Philippines surprisingly appeared in second place after ranking 15th in the latest report.
“These two countries have similar growth engines: play-to-earn (P2E) games and remittances,” explained the blockchain analytics firm.
On the other hand, traffic to websites related to other topics, such as decentralized exchanges, has declined over the past few quarters, according to Chainalysis, which according to Chainalysis is likely related to the bear market and the ongoing crypto winter.
Related: Emerging Markets Leading the Global Adoption Index: Chain Analysis Report
The report also touched on cryptocurrency adoption in India and Pakistan, noting that while it ranks second and third among cryptocurrency users globally in 2021, both countries dropped to fourth and sixth respectively.
Recent regulatory developments are listed as possible reasons for the change.
In January, the central bank and government of Pakistan recommended a ban on cryptocurrencies, while the Indian government introduced a 30% tax on all cryptocurrency earnings in April and an additional 1% fee on each cryptocurrency transaction. in July.