- Vietnam has the highest global crypto adoption rate, according to Chainalysis.
- The US and China ranked lower following a drop in their respective peer-to-peer trading volume.
Recent data from Chainalysis, a blockchain data and analysis platform, shows that crypto adoption has been rising significantly around the world. Countries like Vietnam and India have seen a massive spike in cryptocurrency adoption over the past year, mainly from the peer-to-peer market.
Global crypto adoption grew 881% since 2020
According to the Chainalysis index reading, the global crypto adoption has risen by over 2,300 percent since the last two years and over 881 percent since the second quarter of 2020.
Vietnam (1.00), India (0.37), Pakistan (0.36), Ukraine (0.29), and Kenya (0.28) were ranked the top five countries with the highest crypto adoption rate. The United States held the eighth position with an index of 0.22. Chainalysis said most countries ranked higher on the list due to massive peer-to-peer trading volume.
The increase in crypto adoption for some countries was propelled by the quest for residents to preserve their money from currency devaluation. Also, some residents are increasingly adopting crypto for remittance and business transactions. For countries in Western Europe, North America, and Eastern Asia, the adoption is mostly from institutions, according to Chainalysis research.
P2P volume in US and China plummets
Note that the Chainalysis index is calculated based on three metrics, which includes:
- On-chain cryptocurrency value received, weighted by purchasing power parity (PPP) per capita.
- On-chain retail value transferred, weighted by PPP per capita
- Peer-to-peer (P2P) exchange trade volume, weighted by PPP per capita and number of internet users.
The United States and China ranked eighth and 13th, respectively, in the global cryptocurrency adoption index. This is low compared to their rank (sixth, fourth) last year. Chainalysis explained that the “P2P trade volume weighted for internet-using population” for the countries dropped significantly, which affected their ranking in the global index.