CRYPTO ADOPTION

Emerging markets dominate Global crypto adoption index 2022

The report suggests that cryptocurrency fundamentals appear healthy despite an ongoing bear market

While the price action in cryptos this year has been a sharp contrast to what we saw in 2021, the latest global crypto adoption index published by Chainalysis suggests that overall adoption in digital assets remains above pre-bull market levels, despite a bear market. This is the third edition of this index — I have covered the previous two editions here: 2020 and 2021. Rather than simply taking the raw transaction volume of cryptos, the index takes a little more methodical approach to devise the rankings of different countries.

The previous year was a great one as the novice digital asset class saw a massive 880% jump in global adoption. Although the momentum somewhat waned during 2022, the overall picture remains healthy. The methodology devised for the index to rank 146 countries was based on five key metrics — take the geometric mean of each country’s ranking in all five, and then normalize that final number on a scale of 0 to 1 to give every country a score that determines the overall rankings.

Higher rank for the country was determined by how close they were to one in this…