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Chainalysis, the New York-based blockchain data analytics platform revealed on Wednesday that global cryptocurrency adoption has skyrocketed worldwide.
Residents from different countries are diving deeper into the crypto space and integrating digital assets usage into their day-to-day life. The Chainalysis Global Crypto Adoption Index is an effort to measure cryptocurrency adoption from the grassroots. As per the company, the adoption of digital assets has surged over 880% in the past year and peer-to-peer (P2P) platforms in emerging economies are speculated to be the propelling force.
“We rank all 154 countries according to each of those three metrics, take the geometric mean of each country’s ranking in all three, and then normalize that final number on a scale of 0 to 1 to give every country a score that determines the overall rankings. The closer the country’s final score is to 1, the higher the rank,” Chainalysis reported.
Crypto Adoption Surges as China and US Dip in Global Adoption Rankings
Cryptocurrency adoption has unarguably surged miraculously over the past few years. Different economies have emerged and adopted digital assets in some ways which depict that cryptocurrency has gradually become a global phenomenon.
The Chainalysis report highlights that global adoption of cryptocurrency has risen by 2300% since the third quarter of 2019 and over 880% in the last year, 2020. At the end of the second quarter in 2020, the adoption stood at 2.5% and surged to 24% by the end of quarter 2021.
People are beginning to see crypto as digital assets which called for the surge. They treat crypto as a store value; they send, receive, and carry out their business transaction with no hindrance. Crypto adoption in regions like Eastern Asia, North America, and Western Europe are being largely powered by institutional investments.
Recently, Messari released data showing that Asia accounts for almost half of all digital asset trading including 90% of all volume above $10,000. The trading activity in Asia is equal to Europe and the United States combined, with Asian companies being mainly fond of initiatives – accounting for 94% of BTC and 98% of ETH futures volumes.
Chainalysis has also ranked prominent economies including Kenya, Nigeria, and Venezuela high on its index as they keep enormous transaction volumes on P2P platforms. As posted by the company, many residents in these regions don’t have access to centralized exchanges hence, they adopt P2P crypto exchanges as their primary on-ramp into cryptocurrency.
Surprisingly, the last year 2020, China ranked fourth while the US ranked sixth. This year 2021, the US ranks 8th while China ranks 13th on the global adoption index. The biggest reason for the dip in ranking for both countries is speculated to be their government’s efforts to repress and modulate the entire crypto space.