Emerging markets at the forefront of crypto adoption

14 Sep 2022

Emerging markets are leading the way in terms of cryptocurrency adoption, as they exceed higher-income nations.
 
This is according to the findings from ‘The 2022 Global Crypto Adoption Index,’ report, compiled by blockchain data platform Chainalysis. 
 
The report analysed the millions of global crypto transactions, web traffic and additional on-chain metrics to define which countries are on top in regard to the adoption of digital currencies. 
 
The results reveal countries including Vietnam, Philippines, Ukraine, India, Pakistan, Nigeria, Morocco, Nepal, Kenya and Indonesia are within the top 20 in terms of overall index score, Cointelegraph reports, with Vietnam in pole position. 
 
This is the second consecutive year Vietnam has ranked first in crypto adoption. The report’s sub-rankings show Vietnam has high purchasing power and population-adjusted adoption across centralised, DeFi, and P2P cryptocurrency tools. 
 
Also on the list are upper-middle-income nations such as Brazil, Thailand, Russia, China, Turkey, Argentina, Colombia and Ecuador, whilst the U.S. and UK are the only high-income countries on the index. 
 
The Chainalysis report says of the findings: “Users in lower middle and upper middle-income countries often rely on cryptocurrency to send remittances, preserve their savings in times of fiat currency volatility, and fulfill other financial needs unique to their economies. These countries also tend to lean on Bitcoin and stablecoins more than other countries. Over the coming years, it’ll be interesting to see what solutions the cryptocurrency industry can build to increase adoption in high- and low-income countries.” 
 
As well as crypto adoption rankings, the report also showed that adoption levels remain higher than before the 2020 bull run. “The data suggests that a critical mass of new users who put capital into cryptocurrency during periods of price growth tend to stay even when prices decline, allowing the ecosystem to consistently grow on net across market cycles,” the report states.