According to a recent report from Chainalysis, the blockchain analytics firm, NFTs accounted for 58% of online traffic to crypto services in Central, South Asia, and Oceania during the second quarter (CSAO). The findings revealed that non-fungible tokens (NFTs) are the most important crypto on-ramp driving cryptocurrency adoption in CSAO.
1/ In the next preview of our 2022 Geography of #Crypto Report, we evaluate Central & Southern Asia and Oceania.
Read the to learn:
How the region fared overall
The role of #NFTs and play-to-earn gaming https://t.co/YdzG59S4ji— Chainalysis (@chainalysis) September 21, 2022
CSAO’s Biggest Crypto On-ramp is NFTs
According to an online traffic heatmap, NFT-related websites accounted for most of the web traffic in nearly every country within the CSAO territory. According to Chainalysis, NFTs accounted for 58% of web traffic directed at crypto services in Q2 and have proven extremely popular in Central Asia, Southern Asia, and Oceania.
Furthermore, Oceania and several Asian regions have significant web traffic to NFT-related services, indicating that the sector is a development hub for blockchain-based entertainment. As a result, blockchain gaming and entertainment received considerable traffic.
Furthermore, Oceania and several Asian regions have significant web traffic to NFT-related services, indicating that the sector is a development hub for blockchain-based entertainment. As a result, blockchain gaming and entertainment received considerable traffic.
4/ NFTs are perhaps the biggest on-ramp to cryptocurrency in CSAO today. 58% of web traffic from CSAO IPs to crypto services in Q2 2022 was #NFT related; another 21% was to the websites of play-to-earn #blockchain games. pic.twitter.com/HwQASfZYK9
— Chainalysis (@chainalysis) September 21, 2022
During the quarter, play-to-earn (P2E) blockchain gaming websites received 21% of traffic, with popular games such as Axie Infinity, STEPN, and Battle Infinity among them. Because most P2E games have in-game products that are NFTs and traded on markets like MagicEden and OpenSea, NFTs are “intimately tied” to P2E blockchain games. The NFTs are possibly the CSAO’s largest on-ramp to cryptocurrencies.
So, people who play blockchain games in places like Thailand, Vietnam, and the Philippines, where there is a lot of web traffic to NFT markets, may make up a big part of the web traffic related to NFT.
Some of the Report’s Other Topics
For the second year in a row, Vietnam has led the Chainalysis crypto adoption index. The Philippines, which had previously been ranked 15th, surprised everyone by finishing second. According to the blockchain analytics firm, play-to-earn (P2E) gaming and remittances are similar development drivers for both countries.
But in recent months, people have been less likely to visit websites about other topics, such as decentralized exchanges.
3/ The region is home to seven of the top twenty countries in this year’s index:
Vietnam (1)
Philippines (2)
India (4)
Pakistan (6)
Thailand (8)
Nepal (16)
Indonesia (20)— Chainalysis (@chainalysis) September 21, 2022
According to Chainalysis, this is most likely related to the current crypto winter and a bear market. The report also discussed India and Pakistan’s crypto adoption, stating that both countries would rank second and third globally in terms of cryptocurrency users in 2021. They have since fallen to fourth and sixth place, respectively.
Recent regulatory developments could be one explanation for the shift. The Indian government imposed a 30% tax on all cryptocurrency earnings in April, and in July, it added a 1% fee to each transaction. Furthermore, in January, the Pakistani government and Central Bank proposed a ban on cryptocurrencies.
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