Blockchain information platform Chainalysis has revealed its 2021 Cryptocurrency Adoption Index, which ranks 154 nations by crypto adoption. In response to the agency, international crypto adoption has grown by over 2,300% since Q3 2019 and over 881% within the final 12 months.
New International Cryptocurrency Adoption Index
On Wednesday, Chainalysis revealed a preview of its 2021 Geography of Cryptocurrency report, which will probably be launched in September. The report comprises the “2021 Chainalysis International Crypto Adoption Index,” the corporate’s second iteration “to measure grassroots cryptocurrency adoption across the globe.”
The blockchain information analytics agency defined that its International Crypto Adoption Index is made up of three metrics. The primary is “on-chain cryptocurrency worth acquired, weighted by buying energy parity (PPP) per capita.” The second is “on-chain retail worth transferred, weighted by PPP per capita,” and the third is “peer-to-peer (P2P) change commerce quantity, weighted by PPP per capita and variety of web customers.”
Chainalysis famous that the largest change to its new crypto adoption index methodology from final 12 months’s index “was the elimination of a fourth metric,” which was the “Variety of deposits by nation weighted by [the] variety of web customers.” The corporate described:
We rank all 154 nations in line with every of these three metrics, take the geometric imply of every nation’s rating in all three, after which normalize that ultimate quantity on a scale of zero to 1 to present each nation a rating that determines the general rankings. The nearer the nation’s ultimate rating is to 1, the upper the rank.
In response to the 2021 International Crypto Adoption Index, Vietnam ranks first, adopted by India, Pakistan, Ukraine, Kenya, Nigeria, Venezuela, and the U.S.
China and the U.S. dipped within the new general rating. Final 12 months, China ranked fourth general whereas the U.S. ranked sixth. This 12 months, the U.S. ranks eighth whereas China ranks 13th. “The most important cause each nations dropped is that their rankings in P2P commerce quantity weighted for internet-using inhabitants declined dramatically — China fell from 53rd on this element to 155th, whereas the U.S. fell from 16th to 109th,” Chainalysis detailed.
“Rising transaction quantity for centralized companies and the explosive progress of defi [decentralized finance] are driving cryptocurrency utilization within the developed world and in nations that already had substantial adoption, whereas P2P platforms are driving new adoption in rising markets,” the agency defined, including:
Cryptocurrency adoption has skyrocketed within the final twelve months, and the variation within the nations contributing to that present that cryptocurrency is a really international phenomenon … International adoption has grown by over 2,300% since Q3 2019 and over 881% within the final 12 months.
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