Asia is now tops in the world in cryptocurrency adoption. Vietnam, India and Pakistan are now the top three countries in the world in crypto use — and other Asian countries aren’t far behind, according to Chainalysis’ 2021 Global Crypto Adoption Index published today.
- Thailand, China and the Philippines also ranked in the top 20 for crypto adoption — at 12th, 13th and 15th place respectively, according to Chainalysis, a New York-headquartered blockchain and crypto analytics company.
- The index ranks 154 countries by several metrics: total on-chain cryptocurrency activity and activity of retail or non-professional cryptocurrency users, weighted by purchasing power parity per capita. The rankings also take into account peer-to-peer (P2P) exchange trade volume, weighted by purchasing power parity per capita and the number of internet users.
- Global crypto adoption grew by over 2,300% since the third quarter of 2019 and over 881% since 2020, according to Chainalysis. The reasons for the rise differed depending on the country and region — including emerging markets using cryptocurrency to protect against currency devaluation, the need to send and receive remittances, and levels of institutional investment.
- The rise in crypto adoption in emerging markets like Vietnam has been powered by P2P platforms as residents often don’t have access to centralized exchanges, according to Chainalysis.
- China and the United States dropped in their rankings this year and placed 13th (down from fourth) and 8th (down from sixth), respectively. Chainalysis attributes their declines to the drop in P2P trade volumes in both countries — a reflection of increasing institutionalization of cryptocurrency trading in the United States and the government crackdown on cryptocurrency trading in China.
- “Our data shows that growing transaction volume for centralized services and the explosive growth of DeFi are driving cryptocurrency usage in the developed world and in countries that already had substantial adoption, while P2P platforms are driving new adoption in emerging markets,” Chainalysis said. “Cryptocurrency adoption has skyrocketed in the last twelve months, and the variation in the countries contributing to that show that cryptocurrency is a truly global phenomenon.”