In Brief:-
- Vietnam, India and Pakistan, Ukraine, and Kenya are now in the top 5 countries in the world in crypto use.
- The U.S and China have slipped down, according to the Global Crypto Adoption Index.
The total rate of global adoption of cryptocurrency increased by 880% across the world. Vietnam, India, and Pakistan are now the top countries in the world. With the world benefiting from blockchain technology more and more countries are now adopting cryptocurrencies.
According to Chainalysis Global Crypto Adoption Index calculated 154 countries based on three main metrics. It includes on-chain cryptocurrency value received, on-chain retail value transferred, and peer-to-peer(P2P) exchange volume between July 2020- June 2021. The final number of 0 to 1 gives every country a score that determines the overall rankings. The closer the country’s final score is to 1, the higher the rank.
Global crypto adoption grew by over 2300% since the Q3 of 2019 and over 881% since 2020, according to Chainalysis.
Global Crypto Adoptation Index
According to the 2021 Global Crypto Adoption Index Top-20, Asia is at the top position in the world’s cryptocurrency adoption. Vietnam, India and Pakistan, Ukraine, and Kenya are now in the top 5 countries in the world in crypto use. Vietnam led the field by far, achieving an overall index score of 1.
Moreover, China and the United States dropped in their rankings this year, ranking at 13th and 8th positions. The biggest reason behind both countries is that their rankings P2P trade volume weighted for internet-using population declined dramatically. China fell from 53rd in this component to 155th, while the U.S fell from 16th to 109th.
“Our research suggests that reasons for this increased adoption around the world. In emerging markets, many turns to cryptocurrency to preserve their savings in the face of currency devaluation, send and receive remittances, and carry out business transactions, while adopting in North America, Western Europe, and Eastern Asia over the last year has been powered largely by institutional investment,” the report said.
Various countries in emerging markets, including Kenya, Nigeria, Vietnam, and Venezuela, rank high on the index. Due to huge transaction volumes on the P2P platforms when adjusted for PPP per capita and internet-using population.
It’s no surprise that regions with emergent markets account for a huge portion of web traffic to P2P services websites.
Central and Southern Asia, Latin America, and Africa send more web traffic to P2P platforms than regions have larger economics.
“Many emerging markets represented here limit the amount of the national currency that residents can move out of the country. Cryptocurrency gives those residents a way to circumvent those limits so that they can meet their financial needs,” the report added.
What Will Drive the Next Wave of adoption?
“Our data shows that growing transaction volume for centralized services and the explosive growth of DeFi are driving cryptocurrency usage in the developed world and in countries that already had substantial adoption, while P2P platforms are driving new adoption in emerging markets,” said Chainalysis.
Also Read: Top Five crypto-ready countries prepared for widespread adoption of crypto
“Cryptocurrency adoption has skyrocketed in the last 12 months, and variation in the countries contributing to that show that cryptocurrency is a truly global phenomenon.”
