2 November 2024
These 3 Countries Lead The World In Cryptocurrency Adoption
Ukraine overtakes other countries in crypto adoption as per the Chainalysis report.
The data revealed by Chainalysis has shaken everyone as Ukraine stands in first place in the Global Crypto Adoption Index 2020, followed by Russia and Venezuela.
The index shows three on-chain metrics: the total value of on-chain crypto transactions weighted by purchasing power per capita (PPP), the value of on-chain retail transfers weighted by PPP, and the number of on-chain crypto deposits weighted by the number of internet users.
The index also shows the volume of trades made on peer-to-peer (P2P) crypto exchanges weighted by both the number of internet users and PPP.
The report displays the different levels of development across the crypto sectors of many nations, with the index’s per capita weighting ranking China poorly by the number of on-chain deposits and P2P trade due to its large population — dragging the country down to fourth overall despite China dominating on-chain rankings by both retail and total value.
As per the P2P exchange volume, the two-top performing nations are Kenya and Venezuela.
The P2P volume may overlook the establishment of local regulated exchanges as an indicator of cryptocurrency adoption and twist the results in favor of developing countries that lack a powerful financial sector — likely contributing to the United States ranking below Kenya despite outperforming the African nation in three of the four criteria.
Chainalysis considers Venezuela as an “excellent example” of the forces that drive cryptocurrency adoption within emerging countries, highlighting its use among ordinary Venezuelans as a means to mitigate economic instability:
“Our data shows that Venezuelans use cryptocurrency more when the country’s native fiat currency is losing value to inflation, suggesting that Venezuelans turn to cryptocurrency to preserve savings they may otherwise lose.”
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