Asia dominates the global crypto landscape, accounting for 60% of worldwide crypto users and emerging as the largest contributor to global liquidity. This influence is largely due to price-driven communities and a reliance on centralized exchanges (CEXs) as trusted gateways, shaping user behavior in unique ways.
According to the 2024 Geography of Crypto Report by Chainalysis, five of the top ten countries in the Global Crypto Adoption Index are in Asia: India (1st), Indonesia (3rd), Vietnam (5th), Philippines (8th), and Pakistan (9th). This index highlights crypto’s impact on everyday users, adjusted for GDP and purchasing power, offering significant benefits to developing countries.
CEXs, particularly Binance and Upbit, dominate the market by combining liquidity, distribution, and marketing. Asian users represent 37.1% of global traffic to CEXs, showcasing their trust in these platforms’ vetting roles over direct project engagement. The wealth expectation effect from CEXs significantly influences users’ on-chain behavior.
Asia is also a crucial driver of global crypto liquidity. According to Lily’s speech at Solana Breakpoint, the region contributed 50% of developers from the latest hackathon and 70% of global crypto liquidity, underscoring its unparalleled purchasing power and developer community.
A recent report by Foresight Ventures and Primitive Ventures has explored the different market potential and regulations for nine Asian countries, with each one divided as follows:
China: A Sleeping Giant
Despite strict government regulations, China’s massive population and tech-savvy youth continue to drive global demand for blockchain applications. Classified as virtual assets in Hong Kong, cryptocurrencies are primarily traded on over-the-counter (OTC) markets and decentralized exchanges (DEXs). Young retail users with a high-risk appetite dominate the market, showing a strong preference for meme coins and GameFi projects.
Korea: Speculative Trading and Altcoins
Korea’s crypto market thrives on strong retail participation, fueled by high disposable income and a penchant for speculative trading. Local giants like Kakao and Upbit dominate the market, with non-fungible tokens (NFTs) significantly surpassing decentralized finance (DeFi) in popularity.
Japan: Cautious and Stable
A cautious regulatory approach has fostered a stable crypto market in Japan, with a preference for spot trading and mainstream wallets. Past exchange incidents have made users highly vigilant about security and platform stability.
Singapore: Global Hub and Institutional Investors
Singapore has emerged as a global crypto hub, attracting professional and institutional investors with its clear and friendly regulatory framework. The market is dominated by long-term investments and has one of the highest crypto penetration rates in the world.
Indonesia: Young Users and P2E
Indonesia’s large young user base drives demand for play-to-earn (P2E) games and DeFi, but lower purchasing power requires smart incentive designs. Over 50% of investors are Millennials and Gen Z, with significant activity on DEXs.
Vietnam: GameFi Development Hub
Similar to Indonesia, Vietnam’s crypto market is ripe for projects that benefit from a large user base. The country is emerging as a GameFi development hub, with a young investor population showing a strong preference for DeFi and AI projects.
Philippines: Social Media and X-to-Earn
A culture that is English-speaking, tech-savvy, and dominated by social media makes the Philippines ideal for community-driven crypto projects. Young investors and diaspora workers prefer X-to-earn, gaming, NFTs, and solutions for the unbanked.
Thailand: Clear Legal Framework and Developer Hub
Thailand stands out for its clear legal framework and thriving developer community. The majority of crypto transactions occur through centralized exchanges (CEXs) like Bitkub, which holds a 75% market share.
Malaysia: Friendly Regulation and DeFi
Characterized by friendly regulation and tax exemptions on capital gains, Malaysia has become a regional hub for compliant crypto activity. Users prefer high-growth projects, especially in DeFi, and favor platforms like Ethereum and Solana.
Shogun Lin
