According to a report by Chainalysis on Wednesday, NFTs have emerged as the major crypto on-ramp for nations in Central and Southern Asia as well as Oceania.
NFTs are distinctive tokens built on the blockchain that are used to signify ownership of other digital or physical assets. These tokens are widely exchanged as speculative collectibles, but they may also offer their owners additional features and advantages.
According to the blockchain analytics company, 58% of the online traffic from these nations to crypto services in Q2 2022 was NFT-related.
Within the last two years, the market for NFTs has skyrocketed. Despite the NFT market slowing in the second half of 2022, sales of these digital assets surpassed $23 billion in 2021 and are on track to surpass that record this year. Digital collectibles have become more popular thanks to NFT collections like CryptoPunks and Bored Apes, and, according to Chainalysis, the NFT boom has had a particularly significant influence on the adoption of cryptocurrencies in Central and Southern Asia.
A significant chunk of the NFT-related traffic may therefore originate from players of blockchain games in countries with substantial online traffic to NFT marketplaces, namely Thailand, Vietnam, and the Philippines, according to the analysis.
The analytics company found that play-to-earn blockchain games, which reward players with cryptocurrencies and frequently include NFTs into their gameplay, accounted for another 21% of traffic to cryptocurrency services. Chain analysis thinks the correlation is probably not a coincidence.
In the Philippines, blockchain games like Axie Infinity have been especially well-liked, but as cryptocurrency values have fallen recently, so too have user numbers for these games. The Philippines is second only to Vietnam in the area in terms of crypto acceptance.
In sum, Chainalysis discovered that from July 2021 to June 2022, residents of the area got $932 billion in cryptocurrency worth. The company’s indexing places it as the third-largest cryptocurrency market.
According to the company, remittance tools like cryptocurrencies are becoming more common in these countries in addition to NFTs and play-to-earn games. The survey stated that blockchain-based payment providers are starting to displace traditional middlemen in the $20+ billion remittance industries in Pakistan, India, and Bangladesh. Stablecoins, Ethereum, and Wrapped Ethereum are the two most commonly traded crypto assets in these nations, which is consistent with the prominence of remittance payments and NFTs.
- Cryptocurrency Adoption in Central and South Asia is Being Driven by Ethereum NFTs
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