Crypto is Booming in China as Asia Leads with 60% of Global Users

by

Approximately two-thirds of the world’s digital currency users reside in Asia, while also providing the most substantial portion of global trading volume. A recent study by Foresight Ventures and Primitive has revealed these statistics.

2024’s Global Crypto Adoption Index lists five Asian countries – India, Indonesia, and Vietnam among them – within its top ten most active users of cryptocurrency.

Asia Leads in Global Crypto Adoption

The study underscores the rising trend of cryptocurrency acceptance across Asia, primarily driven by centralized exchange platforms (CEPs) and price-responsive groups. Users from Asia account for approximately 37.1% of global traffic to CEPs, claiming the number one spot in this area.

Currently, North America dominates the use of Decentralized Exchanges (DEX), while Oceania accounts for less than 2% of both Centralized Exchange (CEX) and DEX activity on a global scale.

North America uses more Decentralized Exchanges than any other region, and Oceania contributes very little to the overall use of both Centralized and Decentralized exchanges worldwide.

According to Forest Bai, Co-Founder of Foresight Ventures, speaking with BeInCrypto, the global distribution of tasks in the Web3 field is particularly crucial and surpasses that of traditional internet domains. Asia emerges as a substantial center for crypto developments, users, and trading platforms. This report intends to shed light on Asia’s unique cultural and market traits.

It’s quite possible that Asia holds the third position in Decentralized Exchange (DEX) activity because strict regulations in North America tend to keep Global Centralized Exchanges (CEXs) at bay, causing many users to resort to DEXs instead.

In Q2 of 2024, Singapore experienced a record-breaking surge in crypto transactions worth approximately $1 billion – the highest such figure in two years. As we previously mentioned on BeInCrypto, this dynamic city-state has taken the lead in crypto payments. Remarkably, it issued 13 crypto licenses in the year 2024, which is more than double the number from the previous year.

Additionally, Singapore marked a historic milestone as it was the first Asian nation to feature Ripple‘s RLUSD stablecoin on the trading platform of Independent Reserve. This groundbreaking debut took place on their exchange.

China’s Crypto Market Thrives Despite Bans

According to the report, approximately 5.9% of the traffic on the pump.fun platform was generated from areas where Chinese is spoken, such as China, Hong Kong, Taiwan, and Indonesia. Additionally, about 5.1% came from India.

In 2024, Pump.fun stood as the forefront meme coin platform, with a significant portion of its expansion owed to Chinese users. Additionally, it’s highlighted that Chinese-speaking traders demonstrate a high level of enthusiasm for trading Solana meme coins on platforms such as X (originally known as Twitter).

Despite the common perception that China has outright prohibited cryptocurrencies, the report underscores a flourishing cryptocurrency landscape. Hong Kong, in particular, functions as a bridge to the Chinese market, with robust over-the-counter (OTC) trading activities taking place.

The report suggests that a common perception in Western discussion is that China has outright prohibited cryptocurrencies, thereby giving the impression that China’s crypto market no longer exists. However, it’s important to note that while the industry setting restricts trading activities, China continues to advance its on-chain technology.

As a crypto investor, I’ve noticed that many of my fellow investors in China utilize stablecoins as a means to circumvent capital control restrictions. These digital assets serve as a reliable substitute, allowing us to engage with Decentralized Finance (DeFi) platforms and Decentralized Exchanges (DEXs) securely. This combination offers an appealing alternative for those seeking financial freedom within the boundaries of their country’s regulations.

Moreover, it’s worth noting that the majority of China’s cryptocurrency enthusiasts are young, risk-tolerant retail investors who are drawn to speculative assets such as meme coins like Dogecoin. Additionally, there appears to be substantial enthusiasm among them for decentralized finance (DeFi), gaming-related projects (GameFi), and infrastructure-focused initiatives.

In essence, Asia’s significant impact on worldwide cryptocurrency usage and market activity underscores its crucial influence on determining the future direction of the crypto sector.

Read More

2025-01-10 04:09