October 13th, 2023

Ethereum NFT production falls to all-time low in September

NFT production on Ethereum fell to an all-time low in September, as the floor prices of blue-chip NFT collections continued their decline.

Non-fungible token (NFT) production on Ethereum, or the value of the primary sales generated from NFT minting, fell to an all-time low of US$17.55 million in September, down 12.4% from US$20.05 million in August, according to Forkast Labs data.

NFTs are blockchain-based digital assets that can provide information on digital ownership. Notable collections like the Bored Ape Yacht Club (BAYC) were trading at a floor price of 128 ETH (US$211,000) in May 2022, before dropping more than 60% along with other notable NFT collections like CryptoPunks, which fell 60.4% to 45 Eth (US$72,727), from an all-time high of 113.9 Eth (US$184,080) recorded on Oct. 9, 2021.

“Blue-chip NFT collections such as Bored Ape Yacht Club and CryptoPunks serve as indicators of broader NFT market sentiment. Their decline might signify a shift in investor sentiment, perhaps questioning the intrinsic value of such assets,” Matan Doyich, the chief executive officer of Crypto Index, a firm building centralized infrastructure for tokenized crypto exchange-traded funds, told Forkast.

Reflecting the overall NFT bear market, the Forkast ETH NFT Composite, an index that measures the performance of the top 250 NFTs in the Ethereum blockchain, fell 48% year-to-date to an all-time low of 715.22 points recorded on Sept. 28.

NFT production on the Polygon blockchain fell to a seven-month low of US$4.7 million in September, down from a yearly high of US$14.44 million in August. Polygon NFT production is up 219% year-to-date, from US$1.47 million in January. Despite the rising numbers, the Forkast POL NFT Composite fell over 46% year-to-date.

The overall NFT market slump, along with the decrease in NFT production, can be attributed to a loss of interest by NFT investors, according to Anndy Lian, author of NFT: From Zero to Hero.

“The NFT market was driven by a lot of hype in 2021. However, this has died down in recent months, as people have become more realistic and choosy about the kind of NFTs they want,“ said Lian.

NFT services revenue on Ethereum, or total marketplace fees and creator royalties from secondary sales, fell 84.4% year-to-date to US$6.01 million in September from US$38.74 million in January according to Forkast Labs data.

At OpenSea, one of the world’s largest NFT marketplaces, the protocol’s monthly NFT trading volume fell 31.8% to US$76.79 million in September from US$112.74 million in August, according to data from The Block.

Blur, OpenSea’s rival marketplace, had its trading volume fall 38.3% to US$150.42 million in September, down from US$243.92 million in August.

“To reignite interest in NFTs, the industry needs to see and demand innovations that go beyond digital art and collectibles, such as incorporating NFTs into more substantial real-world applications,” Doyich told Forkast.

This year brought new use cases for NFTs, which will be needed to drive institutional investors, according to David Tng, managing director at TZ APAC, the Asian entity of the Tezos blockchain.

“NFTs will rely on the same pain point of needing to prove their utility, especially against the backdrop of a very volatile market. However, we are still seeing rapid growth and innovation. Enterprises and artists continue to use NFTs as a platform to explore, create and engage with their audiences,” wrote Tng, in a statement shared with Forkast.

Despite the market slump, globally recognized brands continue adopting NFTs. Starbucks launched an NFT version of its iconic pumpkin spice latte last Thursday, to commemorate the 20-year anniversary of the iconic drink. The NFTs worth US$20 have no minting limit and users will receive 250 bonus points that can be spent to improve their Starbucks Odyssey experience, which is the company’s Web3 rewards and loyalty platform.

Source: https://forkast.news/ethereum-nft-production-falls-all-time-low-september/

Anndy Lian

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com

j j j

October 4th, 2023

Is Asia on the Way to Becoming the Next Crypto Hub?

Asia seems to be standing at the forefront of the global cryptocurrency landscape and is headed to become the next crypto hub, with data revealing that central and southern Asia are leading regions in digital asset adoption.

With a number of key seminars taking place in South Korea, Singapore, and Hong Kong, the region is moving fast in establishing itself as a key player in the decentralized finance (DeFi) industry.

How is the region trying to achieve that?

Trade Volume in Asia Surges

ChainAnalysis’ 2023 crypto adaptation index showed central and southern Asia to be leading the way in crypto adaptation, with six of the top 10 countries being located in the region.

In addition, crypto trading volumes are also on the rise in the region, fuelled by market uncertainty in the West powered by the United States Securities and Exchange Commission (SEC) suing three major cryptocurrency exchanges earlier this year, it seems like most major players in the crypto space are moving East.

Anndy Lian, author of NFT: From Zero to Hero, explained:

“As US regulators sued three major crypto exchanges this year, billions of dollars of trading volumes have migrated to Asia. Investors and marketplaces are flocking to Singapore, Japan, South Korea, and more recently to Hong Kong, which introduced a new regulatory regime for crypto.”

Lian added that resilience in Asian crypto volumes is underpinned by institutional investors who view the regulatory environment in the region as less risky and more welcoming for DeFi firms.

Even though market activity has been stagnant, with global crypto adaption taking a hit, influenced by the collapse of FTX and the de-pegging of the TerraUST stablecoin, a number of lower-middle-income (LMI) category countries have been seeing a recovery in grassroots crypto adoption.

“Many of the top countries on our Global Crypto Adoption Index, from Central & Southern Asia to Africa, are in the LMI category, and taken together, LMI countries have seen the greatest recovery in grassroots crypto adoption over the last year. In fact, LMI is the only category of countries whose total grassroots adoption remains above where it was in Q3 2020, just before the most recent bull market,” research by ChainAnalysis revealed.

Asian Countries Are Embracing Cryptocurrencies

“In recent years, Asia has emerged as a hotbed for cryptocurrency innovation and adoption, sparking a growing debate over whether the continent is poised to become the next global crypto hub. With a dynamic blend of technological prowess, regulatory shifts, and a burgeoning interest in digital assets, Asia’s crypto journey is a captivating one to watch,” Rishi Vaidya, the co-founder and head of partnerships and marketing at Carbo-X Token and a recent speaker at the EDGE Global AI and Web3 Investment Summit in Hong Kong told Technopedia in an exclusive interview.

Overall, Asia has been populated with crypto events, including the Korea Blockchain Week at the start of September, Token2049 in Singapore in mid-September, and the Edge Summit in Hong Kong last week.

Token2049 has even made headlines as being the largest cryptocurrency event, sporting 300 exhibitors and 400 side events, and leading faces in the DeFi industry are drawn to the region thanks to its more lenient regulatory regime.

Singapore was the first country to agree on stablecoin regulation meanwhile, Hong Kong had decided to let retail investors trade digital assets while trading crypto in mainland China continues to stay illegal.

Karl Blomsterwall, the CEO of Planet IX and another speaker at the EDGE Summit, told Technopedia:

“Over the last couple of months, we have seen a push from Hong Kong to position itself in a favorable position to capture a larger share of the future crypto and blockchain market. It’s not surprising as the lack of regulatory clarity and commitment in other regions, such as the US, opens up for new entrants.”

Lian added that with so much uncertainty surrounding crypto regulation in the West, a number of major cryptocurrency exchanges have decided to shift their focus to the region, helping it “grow better and in a more stable manner”.

Asia to Become the Next Crypto Hub

Carbo-X Token’s Vaida, Asia’s fascination with cryptocurrencies, can be tracked to the early days of bitcoin (BTC). While the digital asset started as a speculative playground, it has managed to evolve into a more serious investment landscape, with a number of countries in the region embracing cryptocurrencies and establishing a strong foundation for several crypto businesses to flourish.

“China’s foray into the digital yuan and blockchain technology has added further weight to Asia’s crypto dominance. Asian nations have invested heavily in blockchain technology and cryptocurrency infrastructure. South Korea, for instance, has become a hotbed for blockchain startups, while Singapore is a global leader in fintech innovation. These advancements in technology are not just creating opportunities for local entrepreneurs but are also attracting international crypto giants.”

Vaida further noted that regulation will play a bigger role in determining whether Asia will manage to evolve into a crypto hub.

“Asian governments have been exploring various regulatory frameworks to balance innovation and security. Japan, known for its progressive approach, has introduced clear regulations for cryptocurrencies, instilling investor confidence.”

Lian added that Singapore’s proactive approach to regulating stablecoins has given the country a competitive edge in the crypto space, as it offered the region a clear and consistent legal framework for issuers and users of such digital assets.

He highlighted:

“By setting standards for anti-money laundering, consumer protection, and financial stability, Singapore has attracted many global players in the crypto industry, such as Binance, Coinbase, and Gemini, to set up their regional headquarters in the city-state. Singapore’s stablecoin regulation has also influenced other Asian countries, such as Japan, Thailand, and Malaysia, to adopt similar measures or to collaborate with Singapore on cross-border supervision and innovation. As a result, Asia has emerged as a leading region in the crypto markets, with high levels of adoption, liquidity, and innovation.”

Increased Adoption Plays a Major Role

“One of the driving forces behind Asia’s crypto boom is the increasing adoption of digital assets. In countries like India, where a massive population lacks access to traditional banking, cryptocurrencies offer a new financial frontier. Moreover, the younger generation in Asia is more receptive to digital currencies, which bodes well for long-term adoption,” Vaida said.

Planet IX’s Blomsterwall added that the blockchain industry tends to wield much of the world’s talent and is expected to grow massively over the next couple of years. Data found Singapore has the second highest number of crypto-related jobs relative to the country’s population, with 90.86 vacancies per million people, further pushing the region as a great pool for further crypto adoption.

Vaidya added:

“Asia’s crypto ecosystem is not limited to its own borders. International investors and crypto companies are actively seeking opportunities in the region. Silicon Valley giants are eyeing partnerships and investments in Asian startups, recognizing the potential of this market.”

Challenges Remain

Even though the region pushes itself as an emerging space for the DeFi industry, challenges remain.

Vaidya mentioned regulatory uncertainties, security concerns, and the need for cross-border collaboration as some of the most critical factors many nations in the region must still consider.

Blomsterwall added:

“With the recent fraud in JPEX, however, it will be interesting to follow which stance policymakers take towards crypto – keep their current strategy or revert back to a more conservative view.”

However, led by its rapid technological innovation, growing crypto adoption, and dynamic business landscape, Asia “is undeniably on the path to shaping the future of cryptocurrencies”.

The Bottom Line

Asia’s crypto boom signifies a seismic shift in the global financial landscape, pushing the region to become a massive crypto hub in the coming years. Fuelled by regulatory clarity, technological innovation, and growing adoption, the area has emerged as the epicenter of cryptocurrency investment and innovation.

Despite challenges, Asia’s proactive approach, coupled with increasing acceptance among its populace, positions it as the driving force shaping the future of digital currencies.

Source: https://www.techopedia.com/is-asia-on-the-way-to-becoming-the-next-crypto-hub

Anndy Lian

www.anndy.com

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September 12th, 2023

Web2.0 to Web3.0: Unraveling the future of digital infrastructure

The digital landscape is undergoing a profound transformation, moving from the centralized Web2 era to the decentralized and user-centric universe of Web3. In the ever-evolving landscape of technology and finance, the concept of Web3 and its impact on tokenization and decentralization is gaining momentum. This transformative shift holds the promise of revolutionizing various industries, including finance, gaming, and beyond. On the 3rd of August 2023, thought leaders and experts gathered at The Biltmore Mayfair in London to explore the challenges, opportunities, and potential use cases that lie ahead.

A New Horizon for Real Estate: Tokenizing Real-World Assets

The fusion of Web3 technology and traditional real estate ownership has opened doors to innovative possibilities. Just as paintings have held value for centuries, real estate can be seen as a tangible asset that can be owned, bought, and sold. However, what sets Web3 apart is the ability to tokenize these real-world assets on a blockchain.

Through blockchain technology, ownership of real estate can be represented by digital tokens. This has the potential to democratize real estate investments, allowing fractional ownership and lowering the entry barriers for retail investors. By tokenizing properties, individuals can invest smaller amounts and still have a stake in valuable real estate holdings.

Unveiling the Potential: Tokenization of Metals and Commodities

Expanding beyond traditional assets, Web3 technology is poised to disrupt the world of commodities and metals. One exciting development is the tokenization of metals using blockchain, allowing investors to own a fraction of metals like gold and silver. This has the potential to democratize the commodities market, making it accessible to both institutional and retail investors.

Tokenization also enables fractional ownership, enabling investors to purchase small amounts of metals, sometimes as low as ten dollars. Moreover, the option to request physical delivery of the metals adds an interesting twist, catering to industries such as electric vehicle and electronics production. Previously limited to certified exchanges, this new approach opens doors for broader participation.

Challenges and Opportunities in the Crypto Market

While the potential of Web3 and tokenization is exciting, there are challenges that need to be addressed. The cryptocurrency market, which is central to the Web3 ecosystem, faces issues such as volatility, security concerns, and regulatory uncertainties. Negative news, exchange shutdowns, and security breaches have contributed to an environment of instability.

Institutional investors could play a pivotal role in stabilizing the crypto market. By embracing cryptocurrencies and tokenized assets, established players like Tesla can not only diversify their holdings but also streamline cross-border transactions. However, the regulatory landscape remains uncertain in many jurisdictions, where the distinction between security, asset-backed, and utility tokens can impact businesses’ operations.

Navigating Web3: The Transition to Decentralization

The transition to Web3 and decentralization presents a significant paradigm shift. As we move from centralized systems to decentralized networks, there are obstacles to overcome. The instinct to centralize, driven by the benefits of control and financial advantages, can hinder progress. Navigating this shift requires finding solutions to the difficulties of monetization, regulatory compliance, and overcoming vested interests.

To succeed in this transition, a focused approach is crucial. Developing clear and pragmatic use cases for Web3 technologies, such as NFTs (non-fungible tokens) and decentralized finance (DeFi) platforms, can help explain their value proposition to a broader audience. Regulatory frameworks must also evolve to accommodate these new technologies while ensuring consumer protection.

Web3 and the Gaming Industry: A Gateway to Mass Adoption

One of the most promising avenues for Web3 adoption is the gaming industry. Gaming has already embraced digital assets, and the concept of virtual ownership is well-established. With the advent of NFTs, players can own and trade in-game items, characters, and assets, bringing a new dimension to gameplay.

This synergy between Web3 technology and gaming is driving mass adoption. Gamers are familiar with digital assets and tokenization, making the transition to blockchain-based systems smoother. This seamless integration can serve as a gateway for users to experience the benefits of Web3 technology, encouraging them to explore other sectors.

The Future Unveiled: Bridging Real and Virtual Worlds

As we gaze into the future, it’s evident that Web3 will redefine how we interact with assets, both physical and digital. The tokenization of real-world assets and commodities has the potential to democratize investments, offering accessibility and flexibility. Challenges such as regulation and security must be addressed, fostering a conducive environment for the growth of Web3.

Incorporating Web3 into gaming experiences accelerates its adoption, making it an integral part of the digital landscape. As Web3 matures, its impact will transcend industries, reshaping the way we engage with assets, transactions, and networks. The journey to Web3 is not without hurdles, but its transformative potential is undeniable.

As we navigate this landscape, the balance between innovation and regulatory compliance will shape the future of Web3. The promise of decentralized systems, enhanced ownership, and a more inclusive financial world lies ahead. The dawn of Web3 heralds a new era of possibilities, where the fusion of technology and finance paves the way for a decentralized future.

Meet The Panelists

The panel was moderated by Anndy Lian, an Intergovernmental Blockchain Advisor and author of “NFT: From Zero to Hero.” The distinguished panelists included:

Tim Aron, Barrister at Minerva Chambers and External Counsel for Tether and Bitfinex Securities.
Talgat Dossanov, Founder & CEO of Biteeu Exchange.
Rafal Trepka, General Manager for Central Asia at Mastercard.
Daryna Rabinova, Institutional Business Manager at Huobi.

Each panelist brought their unique expertise to the table, providing valuable insights into the various facets of Web3 and its potential impact on the digital infrastructure of the future.

In conclusion, the journey from Web2 to Web3 represents a seismic shift in the digital landscape. It’s a transformation driven by decentralization, user empowerment, and blockchain technology. As we continue to explore the possibilities of Web3, it’s clear that this new paradigm holds the potential to reshape industries, redefine ownership, and empower individuals in ways we have never seen before. The discussions at The Biltmore Mayfair on August 3rd, 2023, served as a testament to the exciting and dynamic future of digital infrastructure in the Web3 era.

Source: https://www.financialexpress.com/business/digital-transformation-web2-0-to-web30-unraveling-the-future-of-digital-infrastructure-3237275/