Chainalysis launches the fourth Global Cryptocurrency Adoption Index. The goal of the study is to identify the countries where the most people are investing the majority of their wealth in cryptocurrencies. Thus, the result was that Central and South Asia lead adoption.
“Popular cryptocurrency adoption is not about which countries have the highest raw transaction volumes. Instead, we want to highlight countries where ordinary people are increasingly adopting cryptocurrencies. That is why we designed the Global Cryptocurrency Adoption Index,” the report detailed.
The Central and South Asia and Oceania (CSAO) region dominates the top spots in the index, with six of the top ten countries located in the region. As discussed in the full report, the circumstances driving adoption in each country in Central and South Asia and Oceania are unique, leading to different usage trends and breakdowns of the most popular services.
Besides, Global cryptocurrency adoption fell, but not in a crucial subset of the world. “We apply our Adoption Index methodology globally by summing the index scores of all 154 countries for each quarter from Q3 2020 to the present, and re-index them again to show growth in adoption over the period. time around the world,” they explained.
Another conclusion was thatGrassroots adoption remains a long way from all-time highs, although there has been a notable recovery from the late-2022 slumparound the time of the FTX implosion.
There is a crucial segment of countries where popular adoption has recovered much more than anywhere else: Lower-middle income countries. The RMB is one of four denominations used by the World Bank to classify countries according to their level of wealth, based on gross national income (GNI) per capita. Those categories are the following:
Many of the top countries in the Global Cryptocurrency Adoption Index are in the LMI category, and together, LMI countries saw the largest recovery in grassroots cryptocurrency adoption over the past year. In fact, LMI is the only category of countries whose total popular adoption remains above where it was in Q3 2020just before the most recent bull market.
“Low-income countries tend to be rising countries, with dynamic and growing industries and populations. Many of them experienced significant economic development in recent decades to escape the low-income group. And perhaps most important of all, 40% of the world’s population lives in low-income countries, more than any other income category.“explained the report.
“If low-income countries are the future, the data indicates that cryptocurrencies are going to be an important part of that future. “This, combined with the fact that institutional adoption – driven primarily by organizations in high-income countries – continues to gain traction even during the current crypto winter, paints a promising picture for the future,” the study concluded.
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