On Sept. 14 CHAINALYSIS team launched the report The 2022 Global Crypto Adoption Index , which measures the level of acceptance of crypto assets by individual, non-professional investors in a given country or region. This article describes the factors that influence the index as well as global crypto adoption and changes in 2022 . Perhaps it will help you to understand the emerging market in the crypto industry.
The Global Cryptocurrency Adoption Index consists of five sub-indexes, each based on the use of different types of cryptocurrency services by country. The five sub-indexes are: on-chain cryptocurrency value and retail value received at centralized exchanges, peer-to-peer (P2P) exchange trade volume, on-chain cryptocurrency value and retail value received from DeFi protocols, all of them weighted by PPP per capita.
Overall adoption redueces worldwidely in the bear market, but remains above pre-bull market levels. According to the index, global adoption of cryptocurrency reached its historical peak in Q2 of 2021. Although it has been falling in the last two quarters, the global adoption remains well above its pre-bull market level in 2019. The on-chain data suggests that big, long-term cryptocurrency holders have continued to hold through the bear market, which keeps fundamental market relatively healthy.
Emerging markets dominate the Global Crypto Adoption Index. Among the top 20 countries in the report, there are 10 lower middle income countries, 8 upper middle income countries, and 2 high income countries. Users in lower middle and upper middle income countries often rely on cryptocurrency to send remittances, preserve their savings when the fiat currency is volatile. These countries also tend to lean on Bitcoin and stablecoins more than other countries. Avoiding devaluation, remittances across borders, and increasing yields, cryptocurrency plays an increasingly important role in the economies of emerging market countries.
The top 20 countries in The 2022 Global Crypto Adoption Index from top to the last: Vietnam, Philippines, Ukraine, India, United States, Pakistan, Brazil, Thailand, Russia, China, Nigeria, Turkey, Argentina, Morocco, Colombia, Nepal, United Kingdom, Ecuador, Kenya, Indonesia.
For the original report, please refer to the link blog.chainalysis.com