Web3 is still only emerging as a widespread instrument for the average user. Though its benefits and applications have already been appreciated in full by businesses, the latter are powerless in terms of advancing the adoption of their Web3 products if the users are either not interested or engaged in the space. This dilemma is felt most acutely in the west, where a large number of Web3 developers are based, and where they are testing and fielding their applications. But that self-imposed limitation is precisely what hinders the development of Web in that part of the world, since there is another part that is not only open to Web3, but has already all but embraced it as a part of life.
That part of the world is the APAC region – Asia-Pacific, which is not only difficult for western companies to access, but even comprehend. As a melting pot of cultures and narratives, APAC is accepting of innovation and even appreciates the diversity offered by Web3 as an instrument of individual and regional empowerment.
The reluctance of western businesses to enter the APAC region’s Web3 space is understandable, since they have little experience of doing profitable business there. But that is precisely the biggest challenge that has to be overcome, since Web3 is the ideal platform for collaboration on a global scale.
In this material, we shall take a deep dive into the statistics of Web3 of APAC and understand what the appeal is and how it can be leveraged to better advance global adoption of the next iteration of the internet.
The Numbers Speak
Web3 is a gigantic and promising frontier that is slowly taking center-stage ever since its first impact on the broader crypto audience with the advent of metaverses and the opportunities they offered. As Web2 recedes, Web3 is starting to introduce entirely new workflows and user interaction scenarios. Businesses are exploring the possibilities offered by AI, virtual reality, machine learning, and the blockchain. Coupled with cryptocurrencies and NFTs, the Web3 space is a vast and untapped environment that not only upends the marketplace experience, but also couples with the phenomenon of a digital reflection of everyday life for intuitive, customizable, personalized, and useful browsing.
Market Growth
In terms of market growth, the Web3 market is expected to witness an uptick in CAGR of up to 39.3% in the period between 2021 and 2025. That translates into a total value of over $107.32 billion. The astronomical increase is associated with the snowballing development of new applications and the transformation of entire industries to suit the Web3 narrative, as well as the adjustment of others for the same purpose. With such a valuation, the possibilities for new application and use case scenarios are almost limitless, giving both businesses and users a distant horizon for imagination. In addition, the global Web3 blockchain-as-a-service market is expected to grow at a CAGR of 35.2% from 2022 to 2029.
User Number Growth
The number of monthly active users, or MAUs, in the Web3 domain overstepped the landmark figure of 1.5 million in 2021. By 2023, over 73 million gamers will use Web3-based games, such as Fortnite and Roblox, the latter having upwards of 43 million users. This rise indicates that Web3 adoption is progressing at a rapid pace, with South Korea, Taiwan, Hong Kong, Vietnam and India leading the way. The rise is attributable to the interest in cryptocurrencies and the interest garnered by the applications in Web3 that provide a fully personalized and user-centric experience. At the same time, user retention rate is estimated to be around 18%.
The TVL
Total Value Locked in Web3 projects overstepped the $50 billion mark in 2021 and has remained at that point well into 2023, though having gone through a massive surge to all-time highs in the period between the years. The importance of DeFi cannot be underestimated, since it acts as a magnet for institutional investors entering the Web3 space. DeFi is also a source of liquidity, trust, transparency, and acts as a gateway to many other Web3 applications, effectively functioning as an on-ramp. Most importantly, DeFi exemplifies the self-governance principles of Web3 and the complete financial sovereignty that users can attain in the space.
Mobile Dominance
Statistics indicate that 66% of Web3 users prefer mobile wallets for accessing decentralized applications. The same statistics indicate that the number is similar for the APAC region. The convenience associated with mobile access is a major factor in accelerating Web3 adoption, but also highlights the user-centric approach that optimizes interaction experiences with applications. There are immense growth points to consider in the mobile domain, considering that decentralized applications are the basis for virtually all Web3 services.
The NFT and DeFi Share
Statistics also reveal that over 90% of all Web3 applications are dedicated to NFTs and DeFi projects, the remaining 10% being attributed to games and niche applications. The numbers reveal that there is immense potential in NFTs and financial vesting is still of prime focus for users who are already in Web3 and those still being onboarded. The allure of DeFi in Web3 is largely attributed to the presence of borrowing and lending facilities with collateralized assets like gold and silver. The presence of NFTs indicates that the merger of real-world assets and their digital counterparts is growing. In addition, the numbers make it clear that there are use case scenarios for NFTs and that users are attracted to this type of asset, paving the way for their future development and innovation.
Gaming
Gaming in Web3 is one of the biggest attractions for users. The possibilities opened by virtual and augmented reality, as well as AI and NFTs provide entirely new gaming experiences with innovative scenarios and gameplay options. Entertainment through gaming in Web3 is expected to exceed $29 billion by 2024. Coupled with the recent lackluster performance of traditional PC and console gaming studios and publishers, the allure of mobile-based and Web3 gaming seems well founded as an alternative, one that requires no expensive hardware and no reliance on the whims of developers. Web3 gaming is actually viewed as a benchmark in innovation for the industry, one that reinforces user engagement and incentivizes them to invest both time and money in the gameplay experience. Furthermore, the APAC region is home to over 40% of Web3 game developers. North America trails with 30%. The period between 2023-2024 is believed to be a turning point at which over 50% of Web3 game developers will originate from Asia.
The Geography of Web3
A statistical breakdown reveals that APAC accounts for over 40% of all Web3 users, with North America trailing at 34%. However, cryptocurrency involvement in Asia has seen a surge of over 706% in user attraction since 2020, leaving all other markets far behind. The US currently holds a 34% stake in Web3 economic matters and assets, followed by Europe at 24%, the remaining being evenly distributed between other countries, with Asia at 18%, African at 14%, and South America at 10%.
Key Takeaways
Asian countries are rapidly developing in the cryptocurrency space thanks to two main factors: the low entry requirements of Web3 and the accessibility of Web3 applications via mobile to a vast audience of young users. The statistics indicate that Web3 has exhibited immense potential in attracting users from such countries as Vietnam, which has little capital, but a huge population willing to rely on convenient and globally accepted cryptocurrencies. If adoption persists at the same pace as in 2023, it is possible to envision that 2025 the APAC region will outpace the United States in terms of user numbers, integration of Web3 services, their deployment, and innovation.
