According to a study by Bitget, Japan’s cryptocurrency use is expected to remain among the highest in the world, with the number of daily crypto traders projected to rise from 350,000 to around 500,000 by the end of this year. This places Japan’s crypto market size between those of Turkey and Indonesia and about two-thirds the size of South Korea’s market. This strong adoption can be attributed to Japan’s progressive regulations, which have fostered the industry’s growth.
The introduction of new regulations focused on compliance, along with the launch of cryptocurrency ETFs in the US, is anticipated to further boost Japan’s crypto market. This is expected to increase involvement from both institutional and retail investors. Gracy Chen, CEO of Bitget, remarked that Japan’s high awareness of crypto creates a dynamic and rapidly evolving landscape, making it a prime area for new technologies and widespread use.
Japan’s Crypto Market Prioritizes Established Coins
The study indicates that Japanese users will continue to show strong interest in local blockchain projects, particularly in gaming. There is also expected to be increased involvement with NFTs and blockchain task platforms. Significant capital investment is anticipated for one or two blockchain game projects in Japan, potentially establishing them as key players in the global crypto market. Additionally, wallets with transaction aggregation and NFT trading functionalities are likely to gain popularity among Japanese users.
Japanese crypto enthusiasts not only show excitement about the space but are also actively trading, with a preference for established, large-cap coins like Bitcoin and Ethereum, which have been approved by Japan’s Financial Services Agency (FSA). This focus on well-known tokens is likely due to regulations limiting leverage on riskier derivative products.
Unique Aspects of Japan’s Crypto Market
Japan’s crypto market is characterized by active use of popular decentralized exchanges (DEX) like Uniswap and PancakeSwap, as well as a strong preference for local centralized exchanges. For crypto wallets, Metamask leads in popularity, followed by Bitget Wallet, Phantom, Trust Wallet, and Coinbase Wallet.
Japan has a significant history with cryptocurrency, marked by both innovation and setbacks. In 2014, the major exchange Mt. Gox suffered a hack that resulted in significant Bitcoin losses for investors, leading to years of legal wrangling. Recently, Mt. Gox began repaying its creditors, offering hope for those affected.
In a notable development, Japanese tech giant Sony Group entered the crypto market last week by acquiring the crypto firm Amber Japan. This move could substantially impact the gaming industry, allowing players to trade cryptocurrencies securely across various platforms and games.
Source: cryptonews.com
