World’s Cryptocurrency Adoption: A Look at Worldwide Crypto-Adoption Trend
Cryptocurrency adoption is growing gradually across the world with the rise in knowledge about crypto and blockchain among people.
Many individuals and businesses of different countries are showing a keen interest in cryptocurrency, and have involved themselves in crypto adoption /investments in various day-to-day transactions.
According to a recently published report, The 2021 Global Crypto Adoption Index by blockchain data platform, Chain analysis, Global crypto adoption has grown by over 880% in the last year. Peer to Peer (P2P) platforms have contributed more to this growth driving cryptocurrency usage in emerging markets. This is a significant escalation in the adoption of cryptocurrency.
The Global Crypto Adoption Index has ranked 154 countries according to the three metrics. They are:
The metric, number of deposits by country weighted by the number of internet users which was used in 2020 has been removed this year.
Rather than focusing on trading and speculations, this index has focused on use cases related to transactions and individual saving so that cryptocurrency adoption by ordinary people of different countries can be emphasized.
According to the Chainanalysis Index, Vietnam is in first place with an index score of 1 followed by India in second place with an index score of 0.37, and Pakistan in third place with an index score of 0.36. Ukraine and Kenya are ranked in fourth and fifth place with index scores of 0.29 and 0.28 respectively. In the index among the top 20 countries, most of them are emerging countries. The U.S which was ranked sixth in the previous year, shrunk into the eighth rank. Similarly, China shrunk from rank fourth to thirteenth.
The Chainanalysis 2021 Index incorporates that many emerging markets like Nigeria, Vietnam, Kenya, Venezuela, Afghanistan, Colombia, and others adopt cryptocurrency to preserve savings by buying cryptocurrency in P2P platforms as fiat currencies face devaluation. People use crypto to send and receive remittances and also to carry out international transactions either for personal or commercial purposes. People of these emerging markets use peer-to-peer (P2P) cryptocurrency exchanges as they don’t have access to centralized exchanges. The restrictions imposed by the country on its people to move the amount of national currency is also the reason people are opting for crypto. Adopting crypto gives people financial freedom and they can make independent decisions to fulfill their financial needs. In developed markets like North America, East Asia, Western Europe, cryptocurrency is adopted and used mainly for institutional investment.
The Chainanalysis index concludes that the exponential growth of DeFi and the growing transactions volume for centralized services are driving crypto usage in developed countries whereas P2P platforms are driving crypto adoption in emerging countries.
As more and more countries are showing interest and engaging themselves in activities involving cryptocurrency, there is no doubt that crypto adoption is skyrocketing and soon will be adopted globally on many platforms.
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