More than 40% of the market capitalisation for the top 20 token projects came from Asia, the report stated
Crypto data research firm Messari’s 99-page ‘Asia’s Crypto Landscape’ report reveals that not only are six of the top ten largest crypto unicorns Asian, but the region also accounts for over 50% of all digital assets trading. The report is aimed at providing a better understanding of one of crypto’s most critical yet often under-studied regions, the firm said on Twitter.
Penned by research analyst Mira Christanto, the report confirmed that China, Japan, Korea, Hong Kong and Singapore lead the crypto market with deep pools of liquidity and added that other Asian countries showed indications of having a great potential to scale.
With Asia accounting for 60% of the world’s population, infrastructure companies across the world are interested in tapping the growing market. Thus, it was no surprise that China dominated the report both in terms of whale activity and size of trades.
“East Asia (mostly China) is dominated by larger trades with 90% of all volumes above $10,000. East Asia engages in more short-term trades over a wider variety of assets, compared to North America where the focus is more on long-term holdings of Bitcoin”, the report said.
Analysts further concluded that Asia accounted for 43% of global cryptocurrency activity, or almost $300 billion in transactions, based on data from Chainalysis over a 12 month period and upto June 2020. Crypto activity in Asia alone is equivalent to that of the US and Europe combined, the report added.
The recent crypto market bull run witnessed several sell-offs during the Asian trading session leading to speculation and discussion on the influence of crypto social media on the region’s market decisions. The sheer numbers in the Asian markets could be huge enough to make a significant global difference, the data from the report suggests.
The report further found that six of the top ten largest crypto firms in the world were located in Asia by the end of 2019.
Companies in the region account for 94% of BTC futures volumes, the report said. This included Binance, Bitmain, Canaan, Block.one, Ebang and Liquid. It was further noted that half of those companies were directly related to Bitcoin mining and influential in maintaining China’s domination in the mining industry.
While China currently controls 65% of the BTC hash rate, Malaysia has entered the top five and accounts for 4.33% of global hash due to its favourable electricity costs, the report concluded.