According to Chainalysis’s Global Crypto Adoption Index, the countries with the highest cryptocurrency usage rates are not developed economies.
Chainalysis’s Global Cryptocurrency Adoption Index; Venezuela shows that Russia and Ukraine are leading the world in cryptocurrency adoption. China and the USA stand out as the only developed economies in the top 10. Three African countries are in the top 10.
The places where the adoption of cryptocurrencies is the most may not necessarily be the world’s economic superpowers.
According to a new report from blockchain research firm Chainalysis, only two of the 10 countries with the highest use of cryptocurrencies are developed economies: China and the United States.
The research firm has developed a new methodology, the Global Cryptocurrency Adoption Index, for measuring cryptocurrency activity among ordinary citizens around the world. Chainalysis, in a blog post; “The aim is to emphasize which country’s citizen positions the biggest share of their financial activities in cryptocurrency.” said.
“While trading and speculation are important to the cryptocurrency economy, we wanted our index to emphasize grassroots adoption by everyday users,” he added.
The firm’s Global Crypto Adoption Index takes into account the population and size of each country’s economy when evaluating four metrics: on-chain cryptocurrency value received, on-chain retail value transferred, number of crypto deposits on-chain, and exchange volume.
Which Countries Are Ahead?
It was determined that Ukraine, Russia and Venezuela, out of 154 countries analyzed by the firm, lead the world in the adoption of cryptocurrencies. China, Kenya, United States of America, South Africa, Nigeria, Colombia and Vietnam are in the top 10.
The firm’s data aligns with that of independent researcher Matt Ahlborg, who founded the Bitcoin analytics site Useful Tulips. Ahlborg has previously stated that Africa and Latin America are currently showing a huge growth in interest in cryptocurrencies such as Bitcoin.
Venezuela and Colombia Leaders in the Use of Cryptocurrencies in Latin America
For example, according to data from Latin America; Venezuela and Colombia are currently the leading countries in terms of Bitcoin trading volume and cryptocurrency adoption as defined by Chainalysis.
Venezuela, in particular, caught the attention of Chainalysis because the current geopolitical conditions made it an almost perfect “case study” for the ecosystem: “Venezuela is a perfect example of what triggers cryptocurrency adoption in developing countries and how citizens use it to reduce economic instability. poses. ”
“Our data shows that Venezuelans are using the cryptocurrency more, while the country’s local fiat currency depreciates against inflation,” the report said. “It shows that Venezuelans are turning to cryptocurrency to protect savings that they could otherwise lose.” he added.
Colombia, meanwhile, ranks ninth in the world for cryptocurrency adoption, despite strict regulations that govern the industry in the country and act as a bottleneck for broader acceptance.