Global Cryptocurrency Adoption Jumps 881% Led by Asian Countries, Index Shows – Featured Bitcoin News
Blockchain knowledge platform Chainalysis has revealed its 2021 Cryptocurrency Adoption Index, which ranks 154 international locations by crypto adoption. According to the agency, international crypto adoption has grown by over 2,300% since Q3 2019 and over 881% within the final yr.
New Global Cryptocurrency Adoption Index
On Wednesday, Chainalysis revealed a preview of its 2021 Geography of Cryptocurrency report, which shall be launched in September. The report accommodates the “2021 Chainalysis Global Crypto Adoption Index,” the corporate’s second iteration “to measure grassroots cryptocurrency adoption around the globe.”
The blockchain knowledge analytics agency defined that its Global Crypto Adoption Index is made up of three metrics. The first is “on-chain cryptocurrency value received, weighted by purchasing power parity (PPP) per capita.” The second is “on-chain retail value transferred, weighted by PPP per capita,” and the third is “peer-to-peer (P2P) exchange trade volume, weighted by PPP per capita and number of internet users.”
Chainalysis famous that the largest change to its new crypto adoption index methodology from final yr’s index “was the elimination of a fourth metric,” which was the “Number of deposits by country weighted by [the] number of internet users.” The firm described:
We rank all 154 international locations according to every of these three metrics, take the geometric imply of every nation’s rating in all three, after which normalize that closing quantity on a scale of 0 to 1 to present each nation a rating that determines the general rankings. The nearer the nation’s closing rating is to 1, the upper the rank.
According to the 2021 Global Crypto Adoption Index, Vietnam ranks first, adopted by India, Pakistan, Ukraine, Kenya, Nigeria, Venezuela, and the U.S.
China and the U.S. dipped within the new total rating. Last yr, China ranked fourth total whereas the U.S. ranked sixth. This yr, the U.S. ranks eighth whereas China ranks thirteenth. “The biggest reason both countries dropped is that their rankings in P2P trade volume weighted for internet-using population declined dramatically — China fell from 53rd in this component to 155th, while the U.S. fell from 16th to 109th,” Chainalysis detailed.
“Growing transaction volume for centralized services and the explosive growth of defi [decentralized finance] are driving cryptocurrency usage in the developed world and in countries that already had substantial adoption, while P2P platforms are driving new adoption in emerging markets,” the agency defined, including:
Cryptocurrency adoption has skyrocketed within the final twelve months, and the variation within the international locations contributing to that present that cryptocurrency is a very international phenomenon … Global adoption has grown by over 2,300% since Q3 2019 and over 881% within the final yr.
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