India, Nigeria, and Vietnam Lead in Crypto Adoption
A recent report by Chainalysis has revealed that India is the global leader in cryptocurrency adoption, followed closely by Nigeria and Vietnam. Despite this, North America still accounts for a significant portion of the value received by cryptocurrency exchanges, with the United States being the clear frontrunner.
Calculating Adoption
Chainalysis used web traffic data from 13 billion web visits to determine crypto adoption. The data was weighted by purchasing power parity per capita, meaning that countries with lower PPP per capita would rank higher if they received equal amounts of cryptocurrency at centralized services. This method helps identify where everyday people are embracing crypto the most.
Crypto Adoption Trends
The report found that crypto adoption has decreased globally, except in lower-middle-income (LMI) countries like India, Nigeria, and Ukraine. These countries have become the biggest adopters of crypto since Q2 2022 when global usage started to decline. This trend suggests that crypto will play a significant role in the future of these rising economies.
“This could be extremely promising for crypto’s future prospects. LMI countries are often countries on the rise, with dynamic, growing industries and populations. […] If LMI countries are the future, then the data indicates that crypto is going to be a big part of that future.”
Regional Breakdown
The top regions in terms of transaction value received are Central and Southern Asia and Oceania, Central, Northern and Western Europe, and North America. While North America dominates in terms of volume on the crypto market, there has been a noticeable decline in institutional transaction volume since April. Additionally, the share of stablecoin in that volume has significantly decreased from February to June.
Europe’s Contribution
Central, Northern and Western Europe account for 17.6% of the crypto value received, with the United Kingdom leading the region, surpassing Germany by more than double the volume. However, the UK ranks 14th globally in terms of adoption.
Hot Take: The Future of Crypto Adoption
The Chainalysis report highlights the growing adoption of cryptocurrency in lower-middle-income countries and suggests that these countries are key to crypto’s future prospects. With dynamic industries and populations on the rise, LMI countries are embracing crypto as an integral part of their future. This trend indicates that cryptocurrency will continue to play a significant role in shaping the economies of these countries.
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