Posted 9 months ago | by Catoshi Nakamoto

According to a new report by blockchain data platform Chainalysis’ titled: “2021 Global Crypto Adoption Index,” worldwide adoption of crypto assets has jumped 880% with third world countries leading the push.

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Chainalysis’ 2021 Global Crypto Adoption Index studied 154 countries based on three fundamental metrics: on-chain cryptocurrency value received, on-chain retail value transferred and peer-to-peer exchange trade volume. The three metrics were weighed by purchasing power parity (PPP) per capita. Then the P2P exchange trade volume was weighed by the number of internet users. All three index criterias were used to determine the overall index ranking of each country.

“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,” Chainalysis said in the report, “while adoption in North America, Western Europe, and Eastern Asia over the last year has been powered largely by institutional investment.”

The report expressed that there are three key trends garnered from the research including:

  • Global cryptocurrency adoption is skyrocketing. Chainalysis data shows that residents of more and more countries around the world are taking the dive into cryptocurrency or seeing existing adoption increase.
  • Global adoption has grown by over 880% in the last year. At the end of Q2 2020, following a period of little growth, total global adoption stood at 2.5 based on our summed up country index scores. At the end of Q2 2021, that total score stands at 24, suggesting that global adoption has grown by over 2300% since Q3 2019, suggesting that the global adoption has grown significantly.
  • China and the U.S. dip in rankings. Last year, China ranked fourth on Chainalysis’s global adoption index while the U.S. ranked sixth. This year, the U.S. ranks eighth while China ranks thirteenth.

Shockingly out of the 154 countries — Vietnam, India, and Pakistan — lead the world in cryptocurrency adoption according to the report. Vietnam received the highest index score at 1.00 as a result of its strong representation across all three fundamental metrics. India came in second with 0.37, and Pakistan came in third slightly under India with 0.36 as per the study.

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It’s worth mentioning that the top 20 countries in the index were mainly made up of emerging economies, with Tanzania, Togo and even Afghanistan making the ranking. Notably, the United States and China rankings fell to eighth and thirteenth as compared to the previous 2020 index, which saw China ranked fourth and the United States in sixth place.

Overall worldwide, crypto adoption as of the end of the second quarter of 2021 is up by more than 2,300% compared to Q3 2019, the report noted.

According to a Press Release about the Index, this is the first part of Chainalysis’s series of reports which will be followed by a DeFi index and regional analyses in the coming weeks.

The Global Crypto Adoption Index measures cryptocurrency adoption across 154 countries highlighting the countries with the greatest adoption by ordinary people focusing on use cases related to personal and business transactions as well as individual saving, rather than just trading and speculation. Chainanalysis belives that focusing on crypto use cases, personal savings, and business transactions is a better way to determine adoption over just those speculating on crypto assets going up or down in price.

Interestingly, the authors of the report argue that DeFi is what is driving cryptocurrency usage.

“Growing transaction volume for centralized services and the explosive growth of DeFi 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 Chainalysis report stated. “Our biggest question for the next 12 months is how much adoption will continue on those platform categories compared to new and emerging models we haven’t seen yet.”

Although, the price could be a major factor that shouldn’t be ignored as Bitcoin has more than 3x’ed in the past 12 months, while the second-largest crypto by market cap Ethereum is up about 7x. It will be interesting to see what the metrics index is during a bear market which will show the real use case and overall adoption of digital assets.

Bitcoin is currently trading at [FIAT: $44,659.94] DOWN -0.9% in the last 24 hours according to Coingecko at the time of this report.

About Catoshi Nakamoto

c6ea0c3794492f30883e516d39b2597a?s=90&d=blank&r=g New Report Shows Crypto Adoption Is Soaring Worldwide With Third World Countries LeadingActivist/Journalist, former writer - We Are Change, The Mind Unleashed, Coinivore, others. Currently writing for - Activist Post and Bitboy Crypto. Not Right or Left Apolitical. I Care About Truths (CATS.) Cryptocurrency enthusiast, I mined and lost 100+ BTC in 2010-2011. I work with - Bitboy, SoMee, CEEK, Presearch, and W3BT aka FMW Media Group. Friend of mostly everyone who isn't a dick. Just A Cool Cat.