Web3 And Crypto Capitals: A Global Perspective

The explosive growth of Web3 and cryptocurrencies has captured the attention of the world, with nearly half a billion people now owning some form of digital asset. As the crypto market boasts a total market cap of US$1.3 trillion – close to the market cap of Amazon AMZN – the landscape for this decentralized technology is rapidly evolving, with regional hubs around the world leading the way. While strong, innovative communities of technologists exist around the world, Web3 and crypto capitals have emerged in three major regions: Asia, the United States, and the Middle East and Africa.

Asia’s Crypto Domination

Asia has emerged as a dominant force in the crypto landscape, with a significant concentration of crypto owners in the Asia-Pacific region. Using data from 10,000 crypto firms worldwide via Crunchbase, as well as using AI-assisted web searches, K33 Research found that of the 420 million people who own crypto worldwide, 262 million are in the Asia-Pacific region . This illustrates the global reach of crypto, as well as the extent of its penetration in the world’s most populous continent. Furthermore, according to Daniel Kim of Tiger Research, a research and consulting firm focused on the Web 3 market, Asia is poised to become the epicenter of global crypto within the next five years.

With well-defined regulations, favorable tax structures and established status as international financial hubs, Singapore and Hong Kong are well positioned as prominent Asian crypto hubs. Among the significant players contributing to the growth of crypto in the region are Binance, OKX and Crypto.com. OKX stands out as a leading global cryptocurrency and Web3 technology company, ranking second in daily trading volume among crypto exchanges while serving a diverse user base of over 50 million individuals worldwide. Hong Kong-based OKX Global Chief Commercial Officer Lennix Lai said: “The web3 and crypto spaces have tremendous innovation potential in Asia. As a global company with a strong and loyal Asia customer base, OKX is investing heavily in the region, both in terms of regulatory compliance and talent, and in the developer and creator community through its OKX Ventures investment arm.”

Representing 60% of the world’s population, Asia is not only the largest global market, but also boasts a young, highly educated population with a voracious appetite for rapid growth. In particular, Korea and Japan, known for their strong gaming and entertainment sectors, are set to become major hubs for Web3 projects. Furthermore, Southeast Asian countries with crypto-friendly policies are positioned to be early adopters and testing grounds for these Web3 initiatives. Consequently, any Web3 projects aiming for global reach must place a premium on strategies targeting Asian users and developers.

Crypto Scene in the United States

The United States is also no stranger to the crypto revolution, with a rich history of innovations and a thriving ecosystem. While Asia remains the dominant region in terms of the number of crypto owners, the US remains a major player in the global crypto landscape, with 54 million crypto owners of its own. In particular, the country has seen increasing interest in the broader potential of blockchain and Web3 beyond traditional investment and trade.

Leading crypto companies in the US, such as Coinbase, Kraken and Gemini, have established themselves as reliable exchanges for trading a wide range of digital assets. Meanwhile, decentralized platforms like Uniswap UNI and SushiSwap have revolutionized the way users exchange cryptocurrencies without relying on intermediaries.

The growing appetite for Crypto in the Middle East, Africa

The Middle East has shown remarkable resilience amid the global bear market, with a growth rate of over 45%. This region, led by countries like Turkey, has embraced the potential of blockchain technology and its incentives. Several factors fuel this interest, including research, education, conferences and supportive government policies.

The United Arab Emirates, in particular, stands out with about one-third of all government applications running on blockchain, and its Central Bank has successfully launched cross-border payments with other central banks using a CBDC. Abu Dhabi has also announced programs such as Women of Web3 to bring other executives outside the UAE to showcase the power of blockchain in the UAE.

Africa’s Embrace of Web 3.0

Meanwhile, Africa’s embrace of Web3.0 is evident through impressive crypto adoption rates, especially in Kenya, Nigeria and South Africa. These countries are globally in crypto use, with Kenya in 5th place (8.5% adoption), South Africa in 7th (7.1% adoption), and Nigeria in 10th (6.3% adoption) as a percentage of their populations. This significant adoption is driven by economic realities such as currency devaluation, a large unemployed youth population using play-to-earn models, and the use of cryptocurrencies for remittances.

The surge in Web3 interest has led to remarkable growth in blockchain funding. In these three countries, Web3 firms secured 70% of all blockchain funding in Africa, outpacing other sectors by a staggering 11x between Q1 2021 and Q1 2022. While rapid growth is promising, regulatory concerns remain. Authorities fear losing control over monetary policy and traditional financial systems. Collaborative engagement between Web3 innovators and regulators is crucial to navigating this evolving landscape.

Given its potential in the web3 space, Unstoppable Women of Web3 and AI have announced a commitment to provide Web3 education for six million women in Africa over the next 5 years. The initiative begins in partnership with 19+ companies, including the African Leadership Group, Africa Women CEOs Network, NFT Domains, Polygon Labs, Sankore 2.0, Unstoppable Domains, Uoma Beauty, and the Virtual Brand Group, along with 17 other companies.

Fred Swaniker, founder and CEO of African Leadership Group, said: “By 2035, Africa will have the largest and youngest workforce in the world and will be the primary driver of the 4th industrial revolution. Considering the nascent nature of the Web3 industry and the fact that women currently make up 50% of the African continent, it is incredibly important to educate and empower our women with the tools they need to succeed in this field achieve success. This partnership will not only promote diversity in Web3, but also enable Africa to establish itself as a global Web3 hub.”

Web3 solutions address diverse challenges across Africa. They facilitate SME financing, improve supply chain transparency, verify education credentials and register real estate. The potential of Web3 applications is significant, as reflected in the substantial funding directed to the region. By aligning with the African Union’s digital strategy, promoting harmonization of data protection, embracing blockchain security and promoting interoperability, Africa’s Web3 journey holds great promise. Collaborative efforts will propel the continent towards a more inclusive and prosperous digital future.

Looking Ahead: A Global Digital Economy

As the global digital economy continues to evolve, the influence of Web3 and crypto-capitals will extend beyond geographic boundaries. Embracing these transformative technologies requires a holistic understanding of their potential and challenges, regardless of region. The journey to an interconnected and decentralized future lies ahead, with each region contributing its unique expertise and perspective to shape the global landscape.

The collective efforts of these crypto-capitals will steer the digital economy into a more inclusive and innovative era, where technology empowers individuals and organizations worldwide. With Asia, the Middle East and the United States at the forefront of this revolution, the future of Web3 and crypto looks promising, unlocking a more accessible and interconnected digital economy for all.