Nigeria, India, and Indonesia are now the top three countries in crypto adoption for 2024, according to Chainalysis’ Global Crypto Adoption Index.
This index reportedly looks at how countries use crypto services, and these three nations took the lead thanks to a combination of factors like transaction volumes, retail usage, and DeFi adoption.
Breaking down the Index
The Global Crypto Adoption Index has four sub-indexes. The first one ranks countries by the total crypto value received by centralized services, and it adjusts the ranking based on the GDP per capita.Â
This helps measure how big crypto adoption is for regular people in each country.Â
For instance, India is ranked first in this category because it received the highest total value in relation to its GDP per capita. Nigeria, ranked second overall globally, came in fifth.
The second sub-index tracks retail transactions. These are crypto transactions under $10,000, which show how individual users engage with cryptocurrencies.Â
India also tops this category, showing that a large number of smaller, personal transactions are happening in the country. Nigeria is ranked second in retail transactions. Indonesia, which ranks third overall, came in sixth.
In the DeFi sub-index, Indonesia took the number one spot globally. India ranked third, while Nigeria landed in second place.
Chainalysis said it made some important changes to its methodology this year. One major change is how they calculate transaction volume.
Before, intermediary steps between wallets could inflate the numbers. Now, Chainalysis only counts the first transaction, providing a more accurate picture of DeFi activity.
This adjustment led to lower estimates for some countries but offers more precise data on who is actually using DeFi services.
Another major change is the removal of the P2P exchange sub-index. For years, P2P exchanges were a key part of measuring the crypto adoption
But with the decline in P2P trading activity and the shutdown of platforms, Chainalysis explained that it has decided to exclude this category for 2024.
Top 20 countries for crypto adoption in 2024
After India, Nigeria, and Indonesia, the United States comes in fourth place, with its ranking boosted by large institutional transactions, especially after the introduction of the Bitcoin ETF.
Vietnam, which previously ranked first in 2023, now sits in fifth place. Ukraine, Russia, and the Philippines round out the top ten.
Brazil and Turkey also feature in the top 10, representing the Latin American and Middle Eastern regions, which have been seeing rapid crypto adoption.
Countries like the United Kingdom (12th), Venezuela (13th), Mexico (14th), and Argentina (15th) show that crypto adoption is especially widespread in regions facing economic challenges. Like Argentina.Â
The country has seen a surge in crypto transactions as people turn to stablecoins to hedge against inflation, which has spiked uncontrollably thanks to President Javier Milei’s strict policies.
Meanwhile, South Korea and China, although major players in the global crypto scene, rank 19th and 20th, respectively.
All in all, crypto activity surged globally between late 2023 and early 2024, even surpassing the levels seen during the 2021 bull market.
DeFi usage has exploded in Sub-Saharan Africa, Latin America, and Eastern Europe, contributing to a surge in altcoin activity. Chainalysis expects this trend to continue as more people in the regions gain access to decentralized financial services.
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