Crypto Adoption Increases 880% This Year, Vietnam Leads globally
According to Data Chainanlysis, global crypto adoption increased 880% over the past year. This result is mainly due to P2P trading activity and the nature of Bitcoin as a store of value-free from government control.
Developing countries are leading the crypto army in its quest to become a global phenomenon. Smaller countries have surpassed developed countries in the share of cryptocurrency usage.
This research is the second research conducted by Chainalaysis. The blockchain data company released the Global Crypto Adoption Index, which ranks 154 countries.
According to metrics such as peer-to-peer exchange trading volume, rather than gross transaction volume, which typically benefits developed countries with high levels of trade. Professional and institutional crypto purchases.
Chainalysis said the index’s goal is to capture crypto adoption by “ordinary people” and to “focus on use cases related to individual transactions and savings, rather than trading and speculation.”
Metrics are measured to include the average wealth of people and the general value of money in certain countries.
Most of the top 20 countries are developing countries, including Togo, Colombia, and Afghanistan. Meanwhile, the United States slipped from sixth to eighth place, and China, which began tightening crypto mining this spring, dropped from fourth to 13th.
Chainalysis considers increasing adoption rates in developing countries such as Kenya, Nigeria, Vietnam, and Venezuela to have large transaction volumes on peer-to-peer or P2P platforms , when adjusted for per capita purchasing power parity and internet user population.
Chainalysis reports that many residents use P2P cryptocurrency exchanges as their primary route to cryptocurrencies, often because they do not have access to a centralized exchange.
The report also says many residents of these countries are turning to cryptocurrencies to secure their savings in the face of currency devaluation.
Cryptocurrency Adoption Is Hard to Measure
P2P trading is a key driver of Chainalysis’s ranking shift. However, the root cause behind this sudden interest in BTC trading could be the global financial crisis and its effect on the most depressed economies.
The report argues that a large number of countries in the top-ranking will have to face sharp devaluations and accelerate the inflation process.
To overcome this, the population tends to look for assets that serve as a store of value. Bitcoin for this business is a perfect candidate for a large number of people.
Many emerging markets are facing significant currency devaluations, prompting residents to buy cryptocurrencies on P2P platforms to save their savings.
Others in this area use cryptocurrencies to carry out international transactions, whether for individual remittances or for commercial use cases, such as buying goods to import and sell. What is Staking? Complete Guide For Beginners
