A recent publication by Chainalysis puts Russia and China above the US in terms of cryptocurrency adoption, with Ukraine leading the way globally
Cryptocurrency data analysis company, Chainalysis, published an index that tracks the adoption of cryptocurrencies in countries around the world.
Ukraine is the global leader in terms of cryptocurrency adoption, according to the Global Crypto Adoption Index 2020. Russia comes in second place despite the tough regulatory stance of the country towards cryptocurrency. Venezuela takes the third place as residents of the country turn to cryptocurrencies to counter the hyperinflation affecting their local currency.
The US comes in sixth place, behind Kenya, China, Venezuela, Russia and Ukraine. The Chainalysis index looked at three on-chain metrics, which are the value of on-chain retail transfers weighted by power per capita (PPP), the total value of on-chain crypto transactions weighted by PPP and the number of on-chain crypto deposits weighted by a country’s number of internet users.
The index also considered other factors such as volumes of trades executed on peer-to-peer (P2P) crypto exchanges against both the number of internet users in a country and it’s PPP.
There are varying levels of development across the cryptocurrency space from country to country. For instance, the per capita weighting ranking method saw China perform poorly in terms of on-chain deposits and P2P trading due to its massive population. This metric dragged China down to fourth place, despite the country leading the way in terms of on-chain rankings by both retail and total value.
According to Chainalysis, Venezuela is a perfect example of the forces that push crypto adoption within developing nations. The firm highlighted the use of cryptos amongst ordinary Venezuelans as a way to mitigate current economic instability. The data shows that Venezuelans turn to cryptocurrencies to preserve their wealth as they might lose it when they save with their local fiat currency.
No Western European country in the top ten
There are some surprises in the report also. No western European country is ranked amongst the top ten in cryptocurrency adoption in the world. The UK, France, Germany, Switzerland and other leading European countries are all missing from the list.
Meanwhile, Vietnam comes in second for the value of both retail and all on-chain transactions. This is despite the government’s early attempts to ban cryptocurrency transactions in the country. Amongst the 154 countries covered, Afghanistan, Algeria, Cape Verde, Chad, Fiji, Laos, Libya, Mongolia, West Bank and Gaza, Tajikistan, Turkmenistan and Zimbabwe rank among the lowest due to transparency reasons.