As per the latest data released by Chainalysis, the US crypto adoption rate is far behind Russia and China. The Global Crypto Adoption Index 2020 released by Chainalysis lists nations according to their crypto adoption policies and regulations. Surprisingly, Ukraine has secured top rank on the index and Russia occupies a sweet second spot.
The pace of US crypto adoption significantly lags behind Russia and China. Chainalysis uses various factors to calculate ranking in its report. It features the cumulative value of on-chain transfers as per the relative PPP. Then it features the complete on-chain retail transfers again with PPP weightage. The last metric includes every crypto deposit on-chain.
Chainalysis also uses the P2P trades with P2P weighted ratio. These statistics are extensive and give a complete picture of how a nation uses cryptocurrencies.
Cryptocurrencies picking up pace
The Chainalysis index highlights that crypto growth in different sectors is not uniform in most nations. China fares poorly in terms of P2P trades as a result of the country’s massive population. However, China leads the index when it comes to retail and total on-chain value.
Surprisingly, Kenya and Venezuela lead the index for P2P exchange volume but fail in other vital metrics. The report emphasizes how P2P volume can cause disruptions in the index. Developing nations mostly lead in P2P trades since nations like the USA have strict regulations related to P2P transactions. Local regulated exchanges are less in number in developing countries.
US crypto adoption rate is driven by strict crypto policies
Well defined policies and comparatively strict vigilance are the main reason behind the nation’s raking on the index. Chainalysis mentions how Venezuela is far ahead in the race when it comes to crypto policies, and regulations. The country is facing an economic disaster and cryptocurrencies are emerging as a lifeline for its citizens.
Ordinary Venezuelans are moving away from their fiat currency. Cryptocurrency is a means to preserve their wealth in case Venezuelan fiat loses its worth due to rising inflation.
Not only is the US crypto adoption rate lagging behind Russia and China, but other European nations also do not enter the top ten ranks.