Considered by some to be the next stage of the Internet, Web3 is a hot topic in ad tech and beyond. The integration of Web3 technology into the world wide web is already coming a long way: in 2021, the global Web3 blockchain market was valued at USD$3.8 million (~£3.1 million).

Analysts now forecast the market to experience growth of 38.2% CAGR by 2028, driven largely by the rollout of 5G and 6G technology, the growing commitment to decentralized applications, and the growing demand for data privacy. If realized, this global market growth could bring about an end to the uncertainty surrounding Web3, cementing it as the successor to Web2, but is the growth of Web3 as universal as it seems?

In this article, we take a look at where and how some of the biggest advances towards Web3 are taking place, and look at which facets of the new technology are making waves in which regions.

North America: the largest market for Web3

Emergen Research reported that North America accounted for the largest share of Web3 revenue in 2021, with the region forecast to grow steadily. This dominance is not surprising, as the region is home to a number of high-profile companies that are paving the way for Web3 adoption, such as Meta, which has invested billions of dollars in developing the metaverse, and Microsoft, which has backed numerous Web3 projects in recent months, ranging from blockchain game development to climate activism. American brands such as Nike and Coca-Cola have also contributed to the expansion of Web3 in the region by integrating virtual reality elements into their marketing campaigns.

North American consumers are also engaging with Web3 on a significant scale; An estimated 13.7% of the US population owns cryptocurrency, as does one in ten Canadians. The largest financial institution in Mexico, BBVA, also launched the “Digital Economy Fund” in October 2022, to allow its clients to invest in NFTs, metaverse, fintech and other Web3 companies. Latin America has made similar strides, with El Salvador becoming the first nation in the world to recognize Bitcoin as legal tender in 2020, though the move later ran into technical problems and citizen mistrust.

To be sure, the FTX collapse has dealt a critical blow to confidence in cryptocurrencies, with reports that investments in Web3 startups in the region plunged 74% in Q4 2022. However, there is a catch. silver lining that FTX’s fall from grace could force more tangible intervention from regulators, creating a tipping point for the digital currency in North America.

APAC: leader in cryptocurrency adoption

While North America has seen a growing commitment to digital currency, the region pales somewhat in comparison to APAC. Chainalysis ranked three countries in the region (Vietnam, Philippines, and India) in the top five for grassroots cryptocurrency adoption, noting that 21% of Vietnamese consumers report using or owning some form of cryptocurrency. However, despite its popularity, cryptocurrency has yet to be legalized in Vietnam and the volatility of the digital currency has prompted reports that the nation’s interest is waning.

The Philippines, by comparison, has been home to numerous federally approved cryptocurrency exchanges for years and the country’s exploration of blockchain technology has tapped it as a potential crypto hub. While the country has certainly embraced cryptocurrencies and virtual assets, reports that the Central Bank of the Philippines announced a three-year pause on applications for virtual asset provider licenses have led to speculation that the country is cooling off its transition. to Web3.

Despite the uncertainty of the future of cryptocurrencies in APAC, Web3 as a whole is expected to grow much faster in the region than in other markets, thanks in large part to increased demand for Web3 systems in financial services, e-commerce, medical care and more.

MENA – a promising landscape

The Middle East and North Africa have also seen great strides towards Web3 adoption. In July 2022, the Dubai government launched the Metaverse Tech Strategy with the goal of becoming a leader in the global XR economies and welcomed Microsoft as a strategic partner later in the year. Saudi Arabia also showed its commitment to virtual reality, celebrating its national day in the metaverse last year in an immersive event that incorporated NFTs to mark the occasion.

Similar to APAC, MENA is relatively advanced in regulating cryptocurrencies, resulting in more user engagement. Morocco announced the completion of its crypto regulatory framework earlier this year, while cryptocurrency giant Binance reported a 49% increase in service user registrations elsewhere in the region following collaboration with agencies. regulators such as the Dubai Virtual Assets Regulatory Authority (VARA). Gemini Report on the world state of cryptocurrencies It also revealed that around 30% of UAE citizens own cryptocurrencies and 47% consider digital currency to be the future of money.

Unlike APAC, however, there seem to be fewer reports of fear towards the viability of Web3 in MENA; Earlier this month, news broke that two prominent Abu Dhabi-based companies, Venom Foundation and Iceberg Capital, had partnered to launch a USD $1 billion (~£800 million) Web3 fund. The recent involvement of the UAE Central Bank in a multinational trial to develop a new digital currency also indicates further momentum within the region to be at the forefront of Web3 innovation.

UK and Europe: proceed with caution

Compared to previous regions, Web3 integration in the UK and Europe seems rather lukewarm. While the European Union has proposed legislation, such as the European Cyber ​​Resilience Law and the Regulation of Markets in Crypto Assets, the region has been notably slow in its regulation of cryptocurrencies and NFTs. Reports that the European Union is moving towards more tangible crypto regulation have also been hit by recent setbacks. The UK has made equally slow progress in regulating Web3; Although plans for the nation to become a global crypto hub were announced in April 2022, few developments have been released since then.

However, this tepid approach has not resulted from a lack of interest in Web3 within the region. While headlines about the failed EU metaverse gala and skepticism around digital currency in the UK may suggest ambivalence towards Web3, research indicates this is far from the truth. Between 2022 and 2028, the European Web3 blockchain market is expected to grow at a 38.0% CAGR, and there is already evidence that this growth is underway: the Report on the world state of cryptocurrencies revealed that a sizeable portion of Europeans are curious about cryptocurrency, with 58% of Irish citizens reporting an interest in engaging with cryptocurrency from 2023. With reports that Binance has been given the green light to operate in seven countries of the EU, it is very possible that cryptocurrencies will catch up in the region in 2023.

The UK shows similarly promising developments, with UK decentralized digital asset app downloads growing significantly over the past five years. Reports also that UK startups such as fashion brand Syky and venture firm Northzone have secured funding for Web3 projects also indicate that the region may be on the cusp of accelerating towards wide-scale adoption.