Chainalysis, a prominent blockchain analytics firm, has just revealed a glimpse at its forthcoming 2023 Geography of Cryptocurrency report by unveiling its fourth annual Global Crypto Adoption Index. The comprehensive report is set to be released next month and is expected to provide invaluable insights into the global crypto landscape.
The latest data follows the publication of another recent report which delved into the world of cryptocurrency millionaires and their global distribution.
The methodology behind the Global Crypto Adoption Index combines on-chain data with real-world data to gauge which countries are at the forefront of grassroots crypto adoption. Chainalysis emphasises that the evaluation considered 154 countries with sufficient data for a comprehensive assessment. Their primary objective was to pinpoint countries where a significant portion of their population is actively investing in cryptocurrency, essentially measuring th e extent of crypto penetration within various nations.
The results of this comprehensive assessment revealed India as the frontrunner, securing the top spot on the Global Crypto Adoption Index. It is closely followed by Nigeria, Vietnam, the United States, Ukraine, the Philippines, and Indonesia.
One notable trend highlighted by Chainalysis is the prominence of the Central & Southern Asia and Oceania (CSAO) region at the top of the index. Six out of the top ten countries on the index hail from this region, showcasing its significant influence in the world of crypto adoption.
Moreover, the report highlights a decline in grassroots crypto adoption on a global scale. Despite this overall decline, many of the top-ranking countries fall into the “lower middle income (LMI)” category, where per capita incomes range from $1,086 to $4,255. Chainalysis underlines that these LMI countries have experienced the most substantial resurgence in grassroots crypto adoption over the past year.
In the previous year’s Global Crypto Adoption Index for 2022, the landscape was different, with Vietnam securing the top spot, followed by the Philippines, Ukraine, India, the United States, Pakistan, and Brazil. This year’s reshuffling of the rankings demonstrates the ever-evolving nature of the crypto market.
The Chainalysis Global Crypto Adoption Index serves to identify and rank countries based on their grassroots crypto adoption. This concept goes beyond merely assessing countries with the highest transaction volumes or the wealthiest crypto ecosystems. Instead, the index aims to spotlight those nations where everyday individuals are embracing cryptocurrency most fervently.
To achieve this, the index comprises five distinct sub-indexes, each focusing on various aspects of cryptocurrency services utilisation within countries. It evaluates all 154 countries for which sufficient data is available on each sub-index. These rankings are then weighted, considering factors such as population size and purchasing power, to create a comprehensive picture of each country’s crypto adoption. The final score is normalised on a scale of 0 to 1, providing a definitive ranking.
Calculating the sub-indexes involves estimating transaction volumes for various cryptocurrency services and protocols, based on web traffic patterns gleaned from these services and protocols’ websites. While Chainalysis acknowledges that web traffic data is not infallible, they assert that given the inclusion of hundreds of millions of transactions and 13 billion web visits in their calculations, any inaccuracies due to VPN usage are negligible and do not compromise the overall data integrity. Chainalysis further strengthens the validity of its index by consulting local crypto experts and operators worldwide, bolstering confidence in their chosen methodology.
The Chainalysis Global Crypto Adoption Index is hence a valuable tool for assessing grassroots crypto adoption across the globe, providing a comprehensive view of the evolving crypto landscape and shedding light on countries where cryptocurrency is becoming an integral part of everyday life for its citizens. As we await the full 2023 Geography of Cryptocurrency report next month, these preliminary findings offer an informative glance at the ever-expanding world of crypto adoption.
Stay informed with our Bi-Weekly Pulse for the latest crypto and blockchain news.
Get access to the week’s most interesting reads, stats and find out about the most recent trends in the cryptocurrency market.
