According to crypto-analysis firm Chainalysis, the global use of cryptocurrency among ordinary investors has increased dramatically in the last year.
Global crypto adoption has increased by more than 881 percent in the last year, based on parameters such as peer-to-peer exchange trade volume and value received.
Top countries using cryptocurrency relating to individual’s transactions rather than trading & speculation.
While the firm recognizes the importance of professional and institutional markets, it sought to emphasize the nations with the highest crypto adoption by retail investors, concentrating on use cases relating to transactions and individual saving rather than trading and speculation. Vietnam, India, Pakistan, and Ukraine are the top four countries in the ranking.
“In emerging markets, many turns to cryptocurrency to preserve their savings in the face of currency devaluation, send and receive remittances, and carry out business transactions,” “while adoption in North America, Western Europe, and Eastern Asia over the last year has been powered largely by institutional investment.”
– Chainalysis said in their report
The Popularity and global use of cryptocurrency is on incline
The popularity of cryptocurrencies has risen in tandem with their value over the last year. Bitcoin has more than tripled in value in the last year. While Ethereum, the second-largest cryptocurrency, has increased by over sevenfold and many other major cryptocurrencies have seen significant rises as well.
Three major parameters were used to rank 154 nations in the firm’s Global Crypto Adoption Index. China and the United States also plummeted in the rankings, owing to a decrease in peer-to-peer trading volume.
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Chainalysis removed one factor from earlier analyses: the number of deposits per nation weighted by the number of internet users. However, the firm discovered that it skewed the results in favor of countries with a higher proportion of DeFi subscribers. Instead, it’s building a DeFi Adoption Index, which will be available in the coming weeks, according to the company.
The Chainalysis analysis further said that the increasing transaction size for centralized services and the exponential extension of DeFi are pushing cryptocurrency usage in the developed world and in countries where acceptance is already high. On the other hand, P2P platforms are driving new adoption in emerging markets.
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