Chainalysis Releases 2021 Global Crypto Adoption Index
Blockchain data and research platform Chainalysis has released its 2021 Global Crypto Adoption Index to kick of its series of geography of cryptocurrency reports.
With cryptocurrency adoption continuing to grow globally, organizations ranging from banks to institutional investors to everyday consumers take notice and have started incorporating digital assets into their financial strategy.
In the Index, Chainalysis puts Vietnam on the first place of countries with regards to adoption to digital assets. A second and third spot is awarded to India and Pakistan. Interestingly, a recent Finder survey conducted over Google on crypto adoption had also placed Vietnam top of the charts, confirming a strong crypto uptake in the country.
Backing up their Index, Chainalysis made us of three different metrics: on-chain crypto value received, on-chain retail value transferred and peer-to-peer (P2P) exchange trade volume. All metrics are weighted by purchasing power parity per capita, to give more significance to crypto activity in countries that have lower recognized wealth levels
Notable in the report is that although China came top in both on-chain value received and on-chain retail value transferred, it only ranked 13th overall. This was due to its P2P exchange trade volume, the third metric of the index.
Other notables in the report include:
- Global cryptocurrency adoption is skyrocketing. The Chainalysis report indicates that residents of more and more countries around the world are taking the dive into cryptocurrency or seeing existing adoption increase.
- There has been a 880% increase in global crypto adoption in the last year. At the end of Q2 2020, following a period of little growth, total global adoption stood at 2.5 based collective country index scores. At the end of Q2 2021, that total score stands at 24, suggesting that global adoption has grown by over 2300% since Q3 2019.
Countries in developing countries and markets improved their rankings thanks to large P2P volumes relative to the country’s wealth and internet-accessibility. Kenya, Nigeria and Venezuela stand out and all rank higher than the US.
Cross-border transactions such as remittance payments, no access to banks or the fact that crypto is a safer money than their native currencies are all reasons of increased crypto adoption in emerging countries.
Chainalysis ends the report with the following takeaway:
“Our biggest question for the next twelve months is how much adoption will continue on those platform categories compared to new and emerging models we haven’t seen yet. The clear takeaway though is this: Cryptocurrency adoption has skyrocketed in the last twelve months, and the variation in the countries contributing to that show that cryptocurrency is a truly global phenomenon.”
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Author: Peter Siu