The report found that the adoption of cryptocurrencies surged over 880% and peer-to-peer (P2P) platforms in emerging economies were the driving force.
The 2021 Chainalysis Global Crypto Adoption Index has been released, the second iteration of Chainalysis’ “efforts to measure grassroots cryptocurrency adoption.” The company states that the goal of this index is to provide the public with a non-biased measure of countries that have the highest level of cryptocurrency adoption.
The report does not merely rank which countries have the highest transaction volume, but “that would favor only the countries with high levels of professional and institutional cryptocurrency adoption.” Chainalysis admits that the professional and institutional markets are very important but the index is designed to show which country has the greatest adoption by “ordinary people.”
Findings of the report
The report concludes that Vietnam, India, and Pakistan are the global leaders in terms of the adoption of cryptocurrency from Q2 o 2019 to the present. The data shows that many countries around the world are getting more involved in cryptocurrency and seeing existing adoption rise.
The numbers show that at the end of Q2 2020 global adoption was around 2.5 “based on our summed up country index scores.” By the close of Q2 of this year, that number has risen to 24, meaning that global adoption has risen more than 2000% since 2019 and nearly 900% since this time last year.“ Chainalysis says that based on their findings, the reasons for the increase in adoption is different from region to region. For example, “in emerging markets, many turn to cryptocurrency to preserve their savings in the face of currency devaluation, send and receive remittances, and carry out business transactions.” Meanwhile, in markets like North America and Western Europe, adoption is spurred on by institutional investments. “On a year when cryptocurrency prices rose dramatically, each region’s respective reasons to embrace the asset class seem to have proven compelling,” the report states.
The report focuses a lot on P2P platforms and how they have had a major impact in several emerging markets. Chainalysis highlights Kenya, Nigeria, Vietnam, and Venezuela in this category and rank high on its index because they have massive transaction volumes on P2P platforms “when adjusted for PPP per capita and internet-using population.” According to local experts, many residents use P2P exchanges as their introduction t cryptocurrency because they lack access to centralized exchanges. In Central America and parts of Asia, more than 30% of web traffic is going to P2P platforms.
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