Blockchain data and analytics firm Chainalysis has released the latest edition of the Global Cryptocurrency Adoption Index, which measures the growth and adoption of cryptoassets worldwide.
The countries that top the list of Chainalysis' Global Cryptocurrency Adoption Index this 2023 are: India, Nigeria, Vietnam , United States, Ukraine, Philippines, Indonesia, Pakistan, Brazil y Thailand.
According to the firm's report, the cryptocurrency market is dominated by Central and South Asia, with 6 countries from these regions in the Top 10 of the index.
Source: Chainalysis
To produce this report, Chainalysis evaluated several metrics that allowed it to understand where people are making the most use of cryptocurrencies in their daily lives.
Chainalysis highlighted that it looked at more than just cryptocurrency trading volumes to determine global crypto adoption, considering other aspects such as total activity and user activity of cryptocurrencies on exchanges, P2P trading volume, and crypto financial activity on decentralized finance (DeFi) protocols. These were all key metrics to see what is happening in the crypto landscape, the firm said.
Cryptocurrency adoption has declined
Global cryptocurrency adoption has recovered since the implosion of Terra and FTX in 2022. However, current metrics, compared to those seen in 2020 and 2021, indicate that global cryptocurrency adoption has declined significantly from its all-time highs.
However, according to the report, this is still noticeable in countries classified by the World Bank as lower middle income (LMI), including India, Nigeria and Ukraine.
In these countries, the recovery in cryptocurrency adoption levels has been higher compared to others that are classified as upper-middle-income (UMI) or high-income (HI). Chainalysis sees this as a positive for the cryptocurrency industry overall due to the growth potential that these countries have.
In the report, the firm highlighted that LMI countries are developing nations, with dynamic and growing industries and populations that can prove promising for the future prospects of the crypto industry.
Organizations accelerate cryptocurrency adoption
The firm also highlighted that organisations in high-income countries are also driving global adoption of cryptocurrencies at an institutional level.
Institutional adoption of cryptocurrencies continues to gain traction despite the bear market, which also paints a bright future for crypto assets, Chainalysis noted. If these trends continue, global cryptocurrency adoption could recover significantly in the near future.
Central and South Asia leads the crypto market
Regionally, the cryptocurrency market is dominated by Central and South Asia, despite the restrictions that some countries in this part of the world have imposed against these digital assets.
In the case of India, which tops the list of countries in Chainalysis' global cryptocurrency adoption index, government authorities maintain a restrictive policy towards the use of cryptocurrencies as a means of payment, despite ruling out banning them.
Recently, Narendra Modi, the Prime Minister of India, said that the nation was working on creating a regulatory framework for cryptocurrencies, in order to establish regulations that ensure the protection of investors and participants as well as financial stability and sovereignty. India, which chairs the G20, seeks to have the regulatory framework in question govern the cryptocurrency industry globally.
Continue reading: Consensys: Nigeria leads global awareness on cryptocurrencies
