According to recent findings from Chainalysis, Vietnam, India, and Pakistan dominate the Global Crypto Adoption Index for the second year in a row. Rather than gross transaction volume, the index rates 154 nations based on peer-to-peer exchange trading activity.
The index rates the top 20 nations and gives an impartial assessment of whether countries have fully embraced cryptocurrency. Rather than trading and speculating, it focuses on use cases relating to personal and corporate transactions, as well as individual saving.
The majority of the top 20 nations, including Togo, Colombia, and Afghanistan, are developing economies. Meanwhile, the US plummeted from sixth to the eighth rank, while China, which cracked down on cryptocurrency this spring, fell from fourth to thirteenth.
- South Africa
According to statistics, global cryptocurrency use has increased by over 880 percent in the last year. For the first time in a year, China and the United States have dropped in the rankings. In the following weeks, the global crypto adoption index will be accompanied by a DeFi index and a series of geo-specific crypto adoption studies.
Asia is leading the way in retail bitcoin adoption, with peer-to-peer monetary systems driving the most development in Vietnam, India, and Pakistan. The number of individuals resorting to cryptocurrencies to safeguard their assets in the face of rising prices has fueled growth in emerging nations
Emerging markets in Asia and Africa, such as Tanzania, Togo, Afghanistan, and the Philippines, dominated the top 20 nations. Institutional investors drove the increased adoption in more established economies such as North America, Western Europe, and East Asia.
What is Chainalysis?
Chainalysis is a data platform that drives applications for investigations, compliance, and market research. It is backed by Accel, Addition, Benchmark, Coatue, Paradigm, Ribbit, and other top startup capital companies to encourage financial independence with less risk. Over 60 countries supply data, software, services, and research to government agencies, exchanges, financial institutions, insurance, and cybersecurity firms.
According to research by Chainalysis, the number of individuals utilising peer-to-peer P2P cryptocurrency exchanges in Kenya, Nigeria, Vietnam, and Venezuela has doubled in the last year. According to the research, many locals utilise peer-to-peer exchanges as their primary gateway into cryptocurrencies since they lack access to centralised exchanges. Many citizens use cryptocurrencies to protect their funds from currency depreciation, send and receive remittances, and conduct commercial transactions.
P2P trading accounts for a large portion of all bitcoin activity, but it is not recorded on blockchains. This is why the study prioritised nations with lower purchasing power parity per capita and fewer internet users by ranking them by peer-to-peer trading volume. In 2020, the research dropped one metric: the number of deposits per nation weighted by the number of online users.
Bitrefill, a firm that lets consumers survive on cryptocurrencies by purchasing gift cards with bitcoin, has a strong presence in Vietnam. Kim Grauer, Chainalysis’ head of research, who prepared the report, claimed Vietnam topped the list. Nigeria is a different scenario. According to Grauer, “It has a significant commercial crypto industry. More and more transactions are taking place on the cryptocurrency rails.”
In a new index of worldwide crypto adoption, Afghanistan, Cuba, and Iran are top-ranked countries. Analysts say it’s challenging to gauge bitcoin acceptance at the grassroots level. Some experts predict sanctioned countries, such as Cuba, will be undervalued because transactions are more difficult to trace. One expert stated, “The technique has a significant blindspot.”
Argentina and Brazil are the Latin American nations where decentralised finance (DeFi) protocols are most often utilised. The two South American countries were rated 16th and 17th, respectively, behind the United States, Vietnam, and Thailand in the international rankings. This might imply that the acceptance of cryptocurrencies at the lowest economic levels is due to a desire to avoid inflation or transfer remittances more easily.
While global adoption has been widespread, regulations have yet to be implemented, and traditional financial leaders are still unsure as cryptocurrency has its risks. Additionally, the industry grows by the day. With new coins and technology being introduced so frequently, the unknown factor of it increases. Experts are advising individuals to be aware of the risks and prepare for them to avoid permanentlosses.