According to Chainalysis, adoption of cryptocurrencies is fastest in Vietnam, India and other developing countries, while the United States and China have lost positions in the Global Crypto Adoption Index.
According to a report by analyst firm Chainalysis, the rate of adoption of cryptocurrencies worldwide has grown 9 times over the past year, with Vietnam, India, Pakistan and other emerging economies leading the way. The Global Crypto Adoption Index 2021 Preview, The Geography of Cryptocurrencies, compares the adoption of cryptocurrencies around the world based on cryptocurrency transaction volume and P2P trading volume between June 2020 and June 2021.
According to analysts, Vietnam is leading by a wide margin and has received 1 point on the cryptocurrency adoption index. India (0.37), Pakistan (0.36), Ukraine (0.29) and Kenya (0.28) are slightly behind. In last year’s Global Crypto Adoption Index, Ukraine was the leader in cryptocurrency adoption with a score of 1, while Vietnam was in tenth place with a score of 0.443. Kenya ranked fifth with 0.645, while India and Pakistan were in the top ten.
Researchers at Chainalysis noted that while the adoption of cryptocurrencies around the world has skyrocketed over the past year, this is especially noticeable in emerging economies. This can be explained by the large volumes of transactions on local P2P platforms when taking into account purchasing power parity per capita and the total number of Internet users.
“Our interviews with experts in these countries have shown that many residents use P2P cryptocurrency platforms as their main gateway to the cryptocurrency market, as they often do not have access to centralized exchanges,” the researchers noted. “Unsurprisingly, emerging market regions account for a huge portion of traffic to P2P service websites.”
Many emerging economies are experiencing massive currency devaluations, prompting people to look for alternative ways to preserve capital, according to the report. In addition, crypto assets make it easier to conduct international transactions – this is especially important since local governments can limit the volume of transactions of the national currency abroad.
Meanwhile, economic leaders, the United States and China, have tumbled to lower positions in the cryptocurrency adoption index compared to 2020. The United States is now in eighth place (was sixth in 2020) and China is thirteenth (fourth in 2020). The researchers noted that the main reason for the drop in the US and China in the rankings is the decline in P2P trade in these countries.
Analysts at Chainalysis concluded that the global rate of adoption of cryptocurrency and its geographic spread over the past year demonstrated that “cryptocurrency is truly a global phenomenon.”
More than $ 2.2 billion in crypto assets were sent to Chinese cryptocurrency addresses linked to illegal activities between April 2019 and June 2021, according to a recent study by Chainalysis.
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