In an effort to measure the adoption of cryptocurrencies at the grassroots level amid the massive growth of the crypto market during the year due to the pull of the industry, the just released report from on-chain research firm Chainalysis revealed an increase in global adoption of over 880%, mainly driven by peer-to-peer platforms.
Said index gives an objective measure of the countries with the highest crypto adoption by ranking their transaction volume, examining their use cases and related transactions rather than relying on trading and speculation.
To determine their overall ranking, around 154 countries were rated in the Global Crypto Adoption Index using three metrics on a scale from 0 to 1.
P2P trading has increased the adoption of crypto
Data on the global adoption of cryptocurrencies shows growing interest from residents of countries as they are ready to step into the room. The data shows that overall global adoption at the end of Q2 2020 was 2.5. While the same quarter in 2021 was almost ten times the previous one at 24. It’s 881% in a year and 2300% between 2019 and today.
The research suggests that this growth in the countries may have been necessary for a number of reasons, such as: However, she also attributed growth in North America, Western Europe and East Asia last year to institutional investments.
Interestingly, peer-to-peer options have been identified for the surge in crypto adoption in emerging markets like Kenya, Nigeria, Vietnam and Venezuela are high in the index. Their transaction volumes on peer-to-peer (P2P) platforms are enormous, caused by the inaccessibility of centralized exchanges. Emerging markets set this record despite facing issues such as currency devaluation and spending restraints.
However, when it comes to web traffic to P2P platforms, Central and South Asia, Latin America and Africa lead the way.
Unfortunately, rich countries like the US and China, which are expected to be ahead of the game, have continued to give way. China moved up from its previous fourth place to 13th place, while the US moved up from 6th to 8th place. This is due to the decline in their P2P trading volume, which is weighted for the population using the Internet.
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