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Non-fungible tokens (NFT) could be the main driver of crypto adoption in Central, South Asia and Oceania (SWAC), according to a new report.

According to a Sept. 21 Chainalysis article titled “Crypto Adoption Steadies in South Asia, Soars in the Southeast,” NFT-related stocks accounted for 58% of all web traffic going to cryptocurrency services in that region in the second quarter of 2022.

Meanwhile, an additional 21% of traffic in the quarter went to gambling websites to win (P2E) blockchain games, with major titles like Axie Infinity, STEPN and Battle Infinity.

Chainalysis noted that P2E blockchain games are “intricately tied” to NFTs, as most P2E games offer in-game items in the form of NFTs that can be sold on marketplaces like MagicEden and OpenSea, meaning:

“NFTs are perhaps the biggest on-ramp to cryptocurrency in CSAO today.”

SWAC countries include India, Thailand, Vietnam, Australia, Singapore, the Philippines, and Indonesia, among 25 others, and are home to seven of the top 20 countries in Chainalysis’ Crypto Adoption Index .

According to a web traffic heatmap, NFT-related websites accounted for the majority of web traffic in almost all countries in the SWAC region, although blockchain games and entertainment also recorded a significant share of traffic.

Heatmap of web traffic in Central, South Asia and Oceania regions. Source: Chain Analysis

Chainalysis noted that this is “not necessarily surprising: CSAO is a hub for innovation in blockchain-based entertainment,” adding:

“Gaming-centric blockchain developers Polygon and Immutable X are headquartered in India and Australia, for example, and Axie Infinity and STEPN, the two biggest play-to-win games, are operated in Vietnam and in Australia.”

Vietnam comes first Chainalysis Cryptocurrency Adoption Index for the second consecutive year, but the Philippines made a surprise appearance in second place after ranking 15th in the last report.

“These two countries have similar growth engines: play-to-earn (P2E) games and remittances,” explained the blockchain analyst firm.

On the other hand, traffic to websites related to other topics, such as decentralized exchanges, has been declining in recent quarters, according to Chainalysis – which it says is likely related to the bear market and crypto winter in progress.

Related: Emerging Markets Lead Global Adoption Index: Chainalysis Report

The report also addressed the adoption of cryptography in India and Pakistan, noting that while both rank second and third among cryptocurrency users globally in 2021, the two countries have fallen this year to fourth and sixth respectively.

Recent regulatory developments are listed as possible reasons for the change.

In January, Central Bank of Pakistan and the government recommended a crypto ban, while the The Indian government has put in place a 30% tax on all crypto earnings in April and an additional 1% fee on each crypto transaction in July.