Chainalysis yesterday released the Global Crypto Adoption Index 2021, which saw Vietnam take first place
Blockchain research and data platform Chainalysis yesterday announced the release of the 2021 Global Cryptocurrency Adoption Index as part of its series of geographic cryptocurrency reports.
Chainalysis used three different metrics to create the index – on-chain crypto value received, on-chain retail value transferred, and peer-to-peer exchange (P2P) trade volume – all weighted by purchasing power parity. per capita, in order to give more importance to crypto activity in countries with lower average wealth.
The geometric mean of the three measurements allowed Vietnam to top the rankings, followed by India and Pakistan. Interestingly, Vietnam also came out on top in a recent Finder report on crypto adoption and in second place according to Statista data, suggesting strong evidence of crypto adoption in the country.
Although China topped both chain received and retail value chain, it is only ranked 13th overall, as it has been dragged down. by its volume of P2P exchanges. This is a significant drop from fourth place last year and the United States has seen a similar, if less dramatic, drop from sixth to eighth place.
Chainalysis attributes these changes to the decrease in P2P volumes in countries since June 2020 compared to the rest of the world. This could be the result of the government’s crackdown on crypto in China and the professionalization and institutionalization of cryptocurrency in the case of the United States.
At the same time, some emerging market countries have improved their rankings for the opposite reason. Kenya, Nigeria, and Venezuela all ranked higher than the United States with large volumes of P2P relative to their wealth and population of internet users.
P2P exchanges are the main crypto access ramp for many citizens of these countries, and their adoption of crypto may be driven by a greater devaluation of the currency than other countries and the benefits that crypto brings to them. cross-border transactions such as transfer payments.
Overall, Chainalysis found that total global crypto adoption at the end of Q2 2021 increased 881% from the same period last year and 2,300% since Q3 2019. The company blockchain data bank concluded that while P2P platforms were fueling adoption in emerging markets, it was the burgeoning decentralized finance (DeFi) sector that drove crypto adoption in the developed world. It is clear that the increasing adoption of cryptocurrency is happening on a global scale.