August 19, 2021, | AtoZ Markets–Chainalysis, the blockchain data platform, today launched its Global Cryptocurrency Adoption Index 2021, the second measurement issued on the adoption of cryptocurrencies worldwide by this company.
Cryptocurrency usage patterns are increasingly diverse. Banks and institutional investors have been joining the millions of people around the world who have decided to adopt cryptocurrencies.
The Global Cryptocurrency Adoption Index measures the adoption of cryptocurrencies in 154 countries. In addition, it highlights the countries with the highest adoption by normal people. It focuses on use cases related to personal and business transactions and individual savings. The index rules out commercial transactions and speculation.
The index ranks the top 20 countries and provides an objective measure of which countries have adopted cryptocurrencies the most after a year of exponential growth in the markets. Countries are scored on a scale of 0 to 1.
Vietnam Leads the Numbers
Several countries in emerging markets, including Kenya, Nigeria, Vietnam, and Venezuela rank high on the index. They have huge transaction volumes on peer-to-peer (P2P) platforms when adjusted for PPP per capita and internet-using population.
Meanwhile, many emerging markets represent a large share of website traffic from P2P services.
Global adoption of cryptocurrency has taken off in the last year, up 881%, with Vietnam, India, and Pakistan firmly in the lead, according to data from Chainalysis.
Most of the top 20 countries are emerging economies, including Togo, Colombia, and Afghanistan. Meanwhile, the United States slipped from sixth to eighth place, and China, which cracked down on crypto this spring, dropped from fourth to 13th.
Central and Southern Asia, Latin America, and Africa send more web traffic to P2P platforms than regions whose countries tend to have larger economies, such as Western Europe and Eastern Asia.
Why Cryptocurrencies Are Used?
Many residents of these countries turn to cryptocurrency to preserve their savings of currency devaluation. As well as to send and receive remittances and carry out business transactions.
“Vietnam stood out to me because it dominated the index,” said Chainalysis’ director of research, Kim Grauer.
“We heard from experts that people in Vietnam have a history of gambling, and the young, tech-savvy people don’t have much to do with their funds in terms of investing in a traditional ETF, both of which drive crypto adoption,” Grauer said.
Nigeria is a different story, Grauer said. “It has a huge commercial market for crypto.”