The Asia Pacific (APAC) region is emerging as a major player in the cryptocurrency market, with retail investor activity surging at a faster pace than other regions.
Following a downturn in 2022, digital asset prices have seen a notable recovery in 2024. Bitcoin, Ethereum and Solana have experienced substantial capital inflows, with Solana outperforming Bitcoin and Ethereum on several trading days since November 2022.
According to the latest Crypto Trends report released by global cryptocurrency exchange Gemini, in collaboration with on-chain analytics firm Glassnode, APAC is demonstrating significant growth in digital asset adoption, marking a shift in global market dynamics.
One of the key takeaways from Gemini’s report is the strong onchain activity growth in APAC. When excluding institutional flows from exchanges and exchange-traded funds (ETFs), the region exhibits faster retail growth compared to other parts of the world.
This trend underscores the increasing participation of individual investors in digital asset markets across APAC, contrasting with the institutional-dominated trading landscape seen in other regions.
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Comparative market trends: APAC, US and EU
Since the market downturn in December 2022, the APAC region has recorded a 6.4 per cent year-over-year (YoY) supply growth in digital assets.
In contrast, the US has seen a -5.7 per cent decline, while the European market has remained relatively stable, experiencing only a -0.7 per cent drop.
This disparity highlights how investor sentiment and capital flows differ based on geographical factors, with APAC demonstrating stronger resilience and growth in the digital asset sector.
The report attributes these regional differences to various factors, including regulatory frameworks, economic conditions and investor sentiment. APAC’s relatively open and evolving regulatory landscape, coupled with high digital adoption rates, has fostered a conducive environment for crypto investment and innovation.
Despite regional variations in growth and adoption, the report emphasises the inherently global nature of digital assets.
Cryptocurrency markets operate across borders, with transaction flows influenced by policies and regulations in different jurisdictions. The ability to move capital seamlessly across regions means that investor behaviour is often shaped by regulatory clarity and economic incentives in specific markets.
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To analyse geographical trends, Gemini and Glassnode use transaction timestamping, a methodology that associates transaction times with specific regions. This approach allows the report to estimate the probability of digital asset activity occurring in the US, Europe or APAC, providing valuable insights into the shifting trends of retail and institutional participation.
The future of cryptocurrency in APAC
As the digital asset market continues to evolve, APAC’s increasing role in global crypto adoption signals a broader decentralisation of market influence. The region’s robust onchain activity growth, coupled with positive supply growth trends, suggests that APAC is becoming a crucial hub for retail crypto investment.
With regulatory frameworks still developing across APAC markets, the trajectory of crypto adoption in the region will likely be shaped by policy decisions in key economies such as Singapore, Hong Kong and Japan.
As the market matures, continued retail engagement and the potential entry of more institutional players could further solidify APAC’s position as a leading force in the global digital asset ecosystem.
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