Introduction
In the lead-up to Consensus Hong Kong 2025, a new report by Coindesk and Protocol Theory took a comprehensive look into Asia-Pacific's (APAC) Web3 landscape, specifically the region's unique adoption trends and the forces shaping its crypto future.
The report focuses on ten key markets: Australia, China, Hong Kong SAR, India, Japan, the Philippines, Singapore, South Korea, Thailand, and the United Arab Emirates. It reveals that APAC's cryptocurrency adoption rate is 22%, significantly higher than the global average of 7.8%.
This 'people-powered crypto movement' is driven by a combination of factors, including a strong belief in the future of crypto, practical utility, and a desire to be part of an innovative financial movement.
1. Seeking Investment Returns Is the Top Reason Why People Get Into Crypto
The primary motivation for cryptocurrency adoption in APAC is the pursuit of financial gains. 58% of crypto users in the region cite investment and seeking potential financial gains as their top reason for using cryptocurrencies.
However, the report also reveals a strong interest in participating in the future potential of cryptocurrency technology and being part of an innovative financial movement. These higher-order motivations are particularly pronounced in Hong Kong, India, and the Philippines, where over half of crypto users express these sentiments.
2. APAC Crypto Users Favour Practical Utility Than Distrust of Traditional Financial Systems
Contrary to some Western markets where distrust of traditional financial systems fuels crypto adoption, APAC users are more driven by practical utility. The ability to make payments within their country or region, send and receive payments overseas, and seek services not available through traditional banks are among the top motivators. This highlights a pragmatic approach to crypto adoption in the region, with users focusing on the real-world benefits of cryptocurrencies.
3. Thailand Is Most Crypto-Connected Country
Thailand boasts the highest crypto adoption rate among the surveyed countries, with 43% of its internet-connected population engaged with cryptocurrencies.
This high adoption rate is attributed to a combination of factors, including strong financial motivations, a desire for financial independence, and a high reliance on technology for maintaining connections with friends and family.
Thai consumers are particularly motivated by the ability to access financial services unavailable through traditional banks and achieve greater financial independence and control.
4. Internet Is the First Key Enabler of Crypto Adoption
Internet access is identified as the most crucial enabler of crypto adoption.
Without internet access, engaging with cryptocurrencies is inherently challenging, as demonstrated by the lower adoption rates in countries with limited internet penetration, such as India, the Philippines, and China.
This highlights the importance of digital infrastructure in facilitating crypto adoption and the need to address the digital divide to ensure broader access to the crypto ecosystem.
5. People's Crypto Interest and Retail Demand Precedes Regulations
While regulation is essential for consumer protection, it is not the primary driver of crypto adoption in APAC.
Only 1 in 4 respondents cite concerns about legal or regulatory issues as a hindrance to adoption.
Instead, people are more worried about volatility, security breaches, and a lack of understanding about how cryptocurrencies work. This suggests that addressing these concerns and building trust are crucial for driving further adoption, while regulation primarily acts as an enabler rather than a catalyst.
6. Countries With a High Proportion of Innovators and Early Adopters Exhibit Stronger Demand for Crypto
The report identifies a strong correlation between a region's Innovation Adoption Propensity (the proportion of Innovators and Early Adopters) and its overall crypto adoption rate.
Countries with a higher proportion of Innovators and Early Adopters, such as China, India, and the UAE, exhibit stronger demand for cryptocurrencies, often overcoming regulatory hurdles.
These early adopters make up the main driving force for crypto adoption and blockchain technology, meaning that further growth would largely depend on how well this group is engaged or empowered.
7. Emerging Markets Are Winning at Crypto Adoption, Compared to Developed Countries
Emerging markets in APAC demonstrate significantly higher levels of crypto adoption compared to their developed counterparts.
This is attributed to several factors, including a greater need for alternative financial solutions, a higher degree of optimism about their financial futures, and a strong propensity for innovation.
Emerging markets also strongly rely on international remittance services and a greater belief in cryptocurrencies as a viable alternative to traditional banking systems.
8. UAE Leads With the Highest Activation Propensity
The UAE stands out with the highest Activation Propensity, which refers to the percentage of total crypto curious population who are actively considering owning or using crypto.
At 48%, this indicates a strong immediate interest in adopting crypto in the UAE, driven by a combination of factors such as a smaller education gap, a high level of familiarity with crypto, and a proactive regulatory environment.
Thailand and India, with Activation Propensities of 45% and 44% respectively, also demonstrate a high level of active interest in crypto adoption and AI blockchain technology, fueled by strong financial motivations and a desire for financial independence.
9. DeFi Is Gaining More Interest. Most Want to Do So to Diversify Financial Portfolio.
Decentralised Finance (DeFi) is gaining significant interest in APAC, with 16% of those aware of DeFi already adopting DeFi services and an additional 20% actively considering it.
The top motivators for DeFi adoption include diversifying financial portfolios, accessing financial services without relying on traditional intermediaries, and the potential for higher yields.
However, barriers to adoption remain, including a lack of understanding of how DeFi works, concerns about security issues, and regulatory uncertainties.
10. AI Has Highest Percentage of Engaged Users in Web3 Subcultures
Among the various Web3 subcultures, Artificial Intelligence (AI) boasts the highest percentage of engaged users, with 45% of those aware of AI and Web3 already adopting AI technologies.
This high adoption rate is driven by AI's ability to enhance productivity, manage daily tasks, and facilitate learning and education.
The convergence of AI with blockchain presents exciting opportunities for decentralised AI projects and collaborative innovations that can empower individuals with personalised online experiences.
In Closing
In conclusion, the APAC region is witnessing a dynamic and fast-changing Web3 landscape, driven by a people-powered movement that embraces innovation and seeks practical solutions.
The region's unique characteristics, including its high adoption rates, diverse motivations, and openness to new technologies, present both challenges and opportunities for Web3 stakeholders.
By understanding these nuances and addressing the key barriers to adoption, the crypto industry can unlock the vast potential of the APAC market and foster a more inclusive and equitable digital future.
For full details of the report, check it out here.
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*Disclaimer: The information provided on this blog does not constitute investment advice, financial advice, trading advice, or any other form of professional advice. aelf makes no guarantees or warranties about the accuracy, completeness, or timeliness of the information on this blog. You should not make any investment decisions based solely on the information provided on this blog. You should always consult with a qualified financial or legal advisor before making any investment decisions.
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