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Global crypto adoption rate report reveals surprising statistics

Crypto adoption

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TL;DR

  • A recent Chainalysis report has revealed the staggering statistics behind the global crypto adoption rate.
  • Regional dynamics and its influence on the adoption rate.

India has surged ahead as the global leader in crypto adoption, followed closely by Nigeria and Vietnam, according to a recent report by Chainalysis. However, despite these figures, North America, with the United States at the forefront, still accounts for nearly a quarter of all the value received by cryptocurrency exchanges. Chainalysis used web traffic data from a staggering 13 billion web visits to track five categories of cryptocurrency-related activities.

Chainalysis reports crypto adoption statistics

The reported activities were weighted according to purchasing power parity (PPP) per capita. In simpler terms, if two countries received equal amounts of cryptocurrency through centralized services, the country with a lower PPP per capita would be ranked higher in terms of adoption. This methodology aimed to identify where “everyday people are embracing crypto the most.” The report reveals a global decline in crypto adoption, except in lower-middle-income (LMI) countries, including India, Nigeria, and Ukraine, which ranks fifth.

These LMI countries, home to 40% of the world’s population, have shown the most significant crypto adoption since the second quarter of 2022 when global usage began to decrease. This trend is promising for the future of cryptocurrency, as LMI countries often experience dynamic growth in their industries and populations, making crypto a potential integral part of their future. Analyzing the regions contributing the most to transaction value received, Central and Southern Asia and Oceania, Central, Northern, and Western Europe, and North America are at the forefront.

North America, especially the United States, continues to dominate the crypto market, with a substantial share of total trading volume. However, there was a noticeable drop in institutional transaction volume starting in April. The share of stablecoins in this volume also experienced a significant decline, falling from 70.3% in February to 48.8% by June. Furthermore, the volume of transactions in decentralized finance (DeFi) decreased from over 75% in August 2022 to less than 50% in July 2023.

Regional dynamics and its influence on the adoption rate

Moving to Europe, Central, Northern, and Western Europe accounted for 17.6% of the total crypto value received, with the United Kingdom taking the lead and contributing more than double the volume of second-ranked Germany. Surprisingly, the UK ranked 14th globally in terms of crypto adoption. However, France has emerged as a leader in DeFi growth within the European region, with DeFi experiencing growth in Central and Southern Asia and Oceania, Eastern Europe, and Central, Northern, and Western Europe over the 12 months ending in June 2023.

Central and Southern Asia and Oceania accounted for 19.3% of the total value received by cryptocurrency exchanges. In this category, India secured the top spot, surpassing Vietnam by a significant margin. Eastern Asia’s crypto transaction volume faced challenges due to bans in China, which began in 2020. Nevertheless, China managed to generate over $75 billion in value received by exchanges in the 12 months leading up to June, with the majority of it being handled by centralized exchanges.

In the Middle East and North Africa, Turkey saw a significant surge in web traffic to nonfungible token (NFT) sites, while Saudi Arabia led the world in transaction growth, experiencing a 12% increase. Nigeria emerged as a dominant player in sub-Saharan Africa, overshadowing other countries in the region in terms of transaction volume. Sub-Saharan Africa accounted for 2.3% of the world’s crypto transaction volume. Interestingly, Bitcoin enjoyed particular popularity in this region, representing 9.3% of the total volume, compared to 4.2% in Eastern Asia.

In Latin America, Chainalysis includes Mexico and Puerto Rico. Argentina and Brazil were the standout contributors to transaction volume in this region. The crypto adoption report highlights the role of cryptocurrencies in protecting users against inflation in Latin America. While crypto adoption has waned in many regions, lower-middle-income countries, including India and Nigeria, continue to show strong interest in cryptocurrencies, suggesting a promising future for digital assets. Europe, Asia, the Middle East, and Latin America each have their unique contributions to the global crypto landscape, with regional variations in adoption and usage patterns.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Owotunse Adebayo

Adebayo loves to keep tab of exciting projects in the blockchain space. He is a seasoned writer who has written tons of articles about cryptocurrencies and blockchain.

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