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- According to fresh data from Chainalysis, global crypto use has increased by 881 percent in the previous year, with Vietnam, India, and Pakistan solidly in the lead
- The Global Crypto Adoption Index, which evaluates 154 nations based on indicators including peer-to-peer exchange trade volume, is being issued for the second year
- In the previous year, global cryptocurrency use has increased by 881 percent, with Vietnam, India, and Pakistan solidly in the lead
According to fresh data from Chainalysis, global cryptocurrency use has increased by 881 percent in the previous year, with Vietnam, India, and Pakistan solidly in the lead. It’s the second year that the blockchain data firm has released its Global Crypto Adoption Index, which ranks 154 countries based on metrics like peer-to-peer exchange trading volume rather than gross transaction volume, which favors developed countries with high levels of professional and institutional crypto buy-in.
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The index’s goal, according to Chainalysis, is to represent crypto adoption by regular people, with an emphasis on transactions and individual savings rather than trading and speculation. The measures are weighted to account for the average person’s wealth as well as the worth of money in specific countries. Togo, Colombia, and Afghanistan are among the top 20 countries with rising economies. Meanwhile, the US slid from sixth to the eighth rank, and China, which cracked down on cryptocurrency this spring, fell from fourth to thirteenth.
A few major variables, according to Chainalysis, are driving increased adoption levels in emerging markets. For example, when adjusted for buying power parity per capita and the internet-using population, nations like Kenya, Nigeria, Vietnam, and Venezuela have massive transaction volumes on peer-to-peer, or P2P, platforms. Many inhabitants, according to Chainalysis, use peer-to-peer cryptocurrency exchanges as their primary on-ramp into cryptocurrencies because they lack access to centralized exchanges.
According to the survey, many people in these nations use cryptocurrency to protect their savings against currency depreciation, send and receive remittances, and conduct business transactions.
Vietnam is the top market for crypto startups
Vietnam is one of the top markets for Bitrefill, a startup that helps users survive on cryptocurrencies by buying gift cards with bitcoin, according to Matt Ahlborg, a peer-to-peer data analyst. Vietnam stood out to me because it topped the index, according to Kim Grauer, Chainalysis’ director of research, who created the analysis.
Experts told them that Vietnamese people have a history of gambling and that young, tech-savvy people don’t have much experience investing in traditional ETFs, both of which promote crypto adoption, according to Grauer. Nigeria, on the other hand, is a different situation, according to Grauer. It has a big commercial crypto market. More and more transactions are taking place on cryptocurrency rails, including international trading with Chinese counterparts.
According to Boaz Sobrado, a London-based fintech data analyst, these top-ranking countries have something else in common. According to him, many countries have capital controls or a large emigrant and immigrant population. Take, for example, Afghanistan, which is currently in chaos as a result of the Taliban’s recent takeover of the government. From a capital controls standpoint, having Afghanistan at the top makes sense, given how difficult it is to get money in and out, according to Sobrado.
According to Sobrado, the approach has a significant blindspot. Sanctioned countries, unlike many other countries, lack reliable and clear statistics on P2P markets. As a result, he believes sanctioned countries like Cuba will be underestimated since transactions are more difficult to detect. According to Ahlborg, there is no perfect way to estimate worldwide crypto usage per capita, but this index is one of the best we have.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
