Annual Review and Outlook of Asia's Web3 Market: Gaming Sector Shows Leading Momentum, Singapore Poised to Become Industry Hub
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Annual Review and Outlook of Asia's Web3 Market: Gaming Sector Shows Leading Momentum, Singapore Poised to Become Industry Hub
Asian companies are beginning to lead the industry. Major investments that once primarily took place in North America can now be found in Asia.
Navigating Web3 tides with focused insightsAuthors: JAY JO, DANIEL KIM, RYAN YOON
Translation: TechFlow
As blockchain technology continues to advance and the cryptocurrency market experiences turbulent changes, Asia's Web3 market underwent significant developments and challenges in 2023. Tiger Research has released a new year report that not only reviews key dynamics in Asia’s blockchain market over the past year but also offers insights into market trends and potential opportunities for 2024. The report provides a detailed analysis of policy shifts, technological innovations, and market responses across Asian countries in the Web3 space, revealing a diverse and vibrant Asian Web3 ecosystem.
Daniel Kim, 2023 Review and 2024 Outlook
Editor’s note: Daniel Kim is CEO and founder of Tiger Research
2023 could be described as the lowest point of what some call the “third crypto winter.” Cryptocurrency prices were highly volatile, venture capital flowing into the industry declined, and there was massive talent outflow. Global macroeconomic uncertainty along with conflicts such as Russia-Ukraine and Israel-Hamas further worsened market conditions. Nevertheless, outstanding projects continued developing and working hard, while several real-world applications in Web3 signaled that hope remains for the blockchain industry.
The United States, Europe, and major Asian nations are now reforming their previously inadequate blockchain regulations, actively crafting new regulatory frameworks. No one in the Web3 industry had a smooth ride in 2023. But for the few who still have confidence in this sector, 2024 will be a year worth looking forward to.
With the Federal Reserve expected to maintain and potentially cut interest rates in 2024, major economies recovering from two years of global monetary tightening, and proactive Web3 policies being implemented in places like Singapore, Japan, and the UAE—removing previous regulatory uncertainties hindering blockchain markets—we believe 2024 will mark the end of the long-running crypto bear market and the beginning of a new cycle.
In particular, three main factors will drive market growth this year:
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Steady inflow of institutional investment funds through Bitcoin ETFs, with major protocol tokens also adopted into ETF structures
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Launch of user-friendly and exciting AAA-grade Web3 games and metaverse platforms
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Development of legally compliant blockchain financial services within regulated jurisdictions, such as STOs and RWAs
These factors are expected to provide fresh momentum for blockchain markets that have yet to achieve broad user adoption, helping build public trust in the blockchain industry.
However, we believe this cycle will differ from previous ones. We won’t see a rising tide lifting all boats—a market where every project and protocol benefits equally from new liquidity inflows. Instead, educated investors and users will identify more proven and useful services, leading toward stronger trends favoring clear winners in an increasingly selective market.
Ryan Yoon, Rise of the Asian Market
Editor’s note: Ryan Yoon is an analyst at Tiger Research
When studying Asia’s blockchain market in 2023, the region has never been more exciting. Significant internal and external transformations are taking place across Asia.
On the internal front, government-led opening of the Web3 market in Japan, regulatory reforms in Singapore, Indonesia establishing a state-owned exchange, and India’s expansion of its CBDC indicate that blockchain markets across Asia are now recognized for clear utility rather than being seen as illicit. This regulatory clarity matters not only for users within Asian countries but also globally, as it sets precedents others can follow.
It’s also noteworthy that Asian companies are starting to lead the industry. Major investments that once primarily occurred in North America are now increasingly found in Asia. A recent example is Line Next, developer of the Finschia platform, investing $140 million.
Externally, as regulatory uncertainty rises in Europe and the U.S., major global projects are turning their attention toward Asia. In particular, Hong Kong and Singapore have become more open to blockchain firms; Unstoppable Domains is relocating to Japan; global exchanges such as Binance and OKX are entering Taiwan.
This shift in focus is also reflected in increasing inquiries directed at Tiger Research. Most of these emphasize the potential offered by high-tech adoption and large populations in Asian countries, indicating that the true potential of Asian markets is only beginning to be realized.
Looking back, 2023 was the year Asia stood out amid market downturns. There’s no doubt the region will play a pivotal role on the global stage—it’s now time to deliver practical use cases.
Jay Jo, 2024 Web3 Gaming Market Outlook
Editor’s note: Jay Jo is an analyst at Tiger Research
The most exciting area in 2024 appears to be “Web3 gaming.” Although many P2E and NFT-based games have failed, this remains a dynamic market filled with continuous creative and innovative attempts. In particular, ongoing development in Web3 gaming suggests we can expect AAA-grade titles to emerge starting in 2024. Growing interest is also evident in diversified genres and novel narratives such as user-generated content games (UGCG) and fully on-chain games (FOCG). According to data from blockchain analytics platform Footprint Analytics, the number of Web3 games is growing at a pace similar to previous bull markets.
Cumulative monthly count of Web3 games
Expectations around the Web3 gaming market are rising, with much attention focused on Asia. Large game developers from South Korea and Japan are leading in Web3 gaming, and this trend is expected to continue into 2024. Both major studios and small-to-medium-sized game developers across these regions are actively participating in the Web3 gaming market. 2024 is anticipated to be an exciting year, with upcoming releases including Nexon's MapleStory Universe, WeMade's Legend of Ymir, Sega's Three Kingdoms War, and Krafton's Overdare.
There are many reasons why the Asian Web3 gaming market is so promising, chief among them being that the region hosts several gaming-focused mainnets. Ronin in Vietnam, Immutable in Australia, Klaytn and Finschia in South Korea, and Oasys and Astar in Japan are all actively expanding their ecosystems. Additionally, due to Asia’s abundance of global content IPs and a vast pool of game developers, the region is well-positioned for Web3 gaming growth. Asia accounts for approximately 40% of the world’s game developers—more than the United States.
MapleStory x Las Vegas Sphere
The global strategies of Asian Web3 gaming projects are also worth noting. These are shaped by regulatory environments—especially in South Korea and Vietnam, where P2E gaming is legally restricted. As a result, Web3 gaming projects are adopting strategies involving overseas entities targeting international users. This approach contrasts sharply with other Asian Web3 projects struggling with globalization, raising expectations for an Asia-centric global Web3 gaming market. The Web3 gaming market in 2024 is expected to become even more active, driven by the launch of numerous Asian Web3 games.
Yoon, Choosing Between Technological Advancement and Mass Adoption
Editor’s note: Yoon is Market Manager at Tiger Research
In 2023, blockchain use cases continued to expand. However, we have yet to witness significant real-world adoption or widespread penetration in areas like STOs, RWAs, and NFTs, which still face regulatory and environmental hurdles.
While 2023 was a year of substantial technological progress in blockchain, that does not equate to mass adoption. Considering the recent Ordinals craze, technological and cultural trends within the Web3 ecosystem are evolving rapidly—but this highlights the existing gap between native Web3 trends and mainstream public applications.
By 2024, we expect performance gaps to widen between projects with strong technical foundations and those skilled only in business development and marketing. Until now, innovations pursued purely for technology’s sake—as seen in both mass adoption efforts and occasional meme coin surges—have significantly impacted the market. That may change. Projects must bridge the gap with the general public and deliver clear utility. Chasing short-term trends like the Bitcoin halving may no longer resonate with either the Web3 ecosystem or the broader public.
What makes 2024 particularly exciting is the growing number of partnerships between Web3 projects and traditional corporations. For instance, collaborations such as MapleStory and Polygon, SK and Avalanche, Sony and Astar Network are expected to mark the beginning of bridging the divide between technological advancement and mass adoption. These partnerships are anticipated to evolve in ways that bring tangible benefits to the general public.
In 2023, Tiger Research published over 90 reports on Asia’s Web3 market, including three special reports based on our field research and interviews. Firsthand experience with each region’s unique and dynamic landscape enabled us to conduct realistic, multifaceted analyses. Based on our findings, we’ve identified the seven most promising Asian Web3 markets for the coming years.
Top 7 Asian Markets Selected by Tiger Research
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Singapore
Click below for more details on Singapore’s Web3 market:
Under sustained government efforts led by the Monetary Authority of Singapore (MAS), Singapore is solidifying its status as Asia’s financial hub. Moreover, Singapore positions itself as a model nation for the global blockchain market, hosting experimental initiatives in ICOs, STOs, RWAs, and payments. Its policies are notable for seeking to harness the advantages of blockchain technology while minimizing risks for investors and the broader ecosystem. Low taxation and a business-friendly environment further enhance Singapore’s appeal. Even into 2024, Singapore is expected to remain the go-to Web3 hub for founders across Asia, including Greater China.
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South Korea
Click below for more details on South Korea’s Web3 market:
South Korea is known for corporate-driven entry into the Web3 market, especially in blockchain game development. Despite restrictions under the Game Industry Promotion Act limiting the release and distribution of blockchain games domestically, the sector continues to thrive. Numerous large game companies and small-to-medium studios are preparing to launch blockchain games leveraging major content IPs for international audiences. By 2024, South Korea is expected to debut high-quality games that combine blockchain technology with innovative gameplay elements, meeting gamer expectations.
Meanwhile, South Korea recently emerged as one of the frontrunners in the latest crypto bull run, with such enthusiasm creating the term “Kimchi premium.” Given its high liquidity, various global Web3 projects are expected to enter the country, and their participation will likely make South Korea’s Web3 market even hotter in 2024.
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Japan
Click below for more details on Japan’s Web3 market:
Japan is a country where the government is proactively advancing the Web3 industry. Regulatory requirements for virtual assets are gradually being relaxed, and local governments are actively adopting Web3 technologies such as NFTs and DAOs. Corporate involvement in the Web3 ecosystem is also notable. Major players in gaming, finance, and telecommunications are accelerating their entry into Web3. In particular, we expect increased participation in 2024 from large game developers with global content IPs, such as Sony, Bandai Namco, Sega, and Square Enix. Furthermore, domestic mainnets like Astar and Oasys led Japan’s Web3 market in 2023, and their active collaboration with enterprises deserves close attention. With many initiatives expected to bear fruit in 2024, we anticipate abundant opportunities in Japan’s Web3 market going forward.
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India
Click below for more details on India’s Web3 market:
India’s young demographics, large population, and high growth potential make it a high-potential country for the Web3 market. Notably, it boasts the second-largest developer community after the U.S., with about 13.2 million developers—an advantage in the Web3 space. India also has a thriving startup ecosystem and an English-speaking population, making global market access easier.
India successfully launched global Web3 infrastructure projects like Polygon, accelerating the influx of diverse talent into the Web3 market. Additionally, the government’s stance shifted from banning all crypto assets in 2021 to promoting innovation by 2023, further boosting expectations.
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Thailand
Click below for more details on Thailand’s Web3 market:
Thailand is a country to watch, as the government, traditional financial institutions, and the public all show strong interest in the cryptocurrency market. Particularly notable are Web3 initiatives led by traditional finance, with Thai commercial banks such as Siam Commercial Bank and Bangkok Bank actively involved. Recently, a pro-crypto figure was elected Prime Minister, and the Thai government subsequently announced plans to distribute cryptocurrency to all citizens as part of a basic income program—further raising expectations.
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Vietnam
Click below for more details on Vietnam’s Web3 market:
Vietnam is a youth-driven adopter of blockchain technology. Beyond high tech adoption, it is poised to become an Asian Web3 powerhouse, able to hire competitive blockchain developers at relatively low labor costs. With successful global Web3 projects such as Sky Mavis and Kyber Network already established, Vietnam is also expected to positively influence the development of the global blockchain ecosystem. However, regulatory uncertainty remains a key challenge.
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Indonesia
Click below for more details on Indonesia’s Web3 market:
Indonesia’s Web3 market is the giant of Southeast Asia, with immense potential. Macro indicators such as the world’s fourth-largest population, vast market size, youthful and active population, and Web3-friendly policies are driving market growth—especially following the launch of a state-owned cryptocurrency exchange in 2023.
Indonesia is also a country where blockchain technology holds promise due to limitations in the existing financial system, suggesting long-term growth potential for its Web3 ecosystem. However, challenges remain, including an underdeveloped Web3 ecosystem, lack of public awareness, and a market structure centered around major political and economic stakeholders.
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