Posted 2 years ago | by Ben Armstrong
Ukraine is a Leader in the Global Crypto Adoption Wave
New insights from Chainalysis indicate that Ukraine holds a top position in crypto adoption globally. Recently, Chainalysis just conducted in-depth research to analyze the, “differences in crypto adoption between countries across the globe.”
Dubbed “Global Crypto Adoption Index 2020,” the research has revealed that it is not China but Ukraine that holds the first position regarding adoption metrics. The second and third place are familiar names – Russia and Venezuela.
The index examines a set of metrics, including the total value of on-chain crypto transactions measured per capita with purchasing power parity, or PPP, the quantity of on-chain crypto deposited by the number of internet users, and the value of on-chain retail transfers.
The Ukraine is Ramping Up Crypto Use
The trading volume in P2P cryptographic exchanges measured by both the number of internet users and PPP according to the report.
The growth of the crypto industry has progressed in an unbalanced way for several countries, with China's per capita index on the low side due to its huge population – pushing the country to fourth overall, despite the fact that China dominates both retail and total values.
Chinese people are the main contributors to China's per capita ranking.
On the other hand, Kenya and Venezuela have become the two leading nations based on P2P exchange volume, putting the nations on the top five list, even though both fail to rank in top ten in any other criteria.
Some Questions Remain
Chainalysis may have left unnoticed regulatory factors or the setting up of local regulated exchanges as an adoption indicator – skewing the findings to developing nations that lack a strong financial sector, which is probably adding value to Kenya.
Described as an “excellent example,” it is estimated that Venezuela has decisive factors that shape the adoption of cryptocurrency into emerging economies, outlining its use among regular Venezuelans as a way to alleviate economic volatility.
According to the report,
“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.”
Chainalysis’ list did not see any Western European nations ranked among the top ten countries – which may change as the Euro zone sees additional economic pressure, and its citizens look for ways to safeguard their buying power.
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