New York-based blockchain data analytics platform Chainalysis revealed on Wednesday that global cryptocurrency adoption has skyrocketed worldwide. Residents from more and more countries are diving deeper into the crypto space and integration digital assets usage in their day-to-day life.
The Chainalysis Global Crypto Adoption Index appears as an effort to measure cryptocurrency adoption from the grassroots. Per the company, the adoption of digital assets has surged over 880% in the past year and peer-to-peer (P2P) platforms in emerging economies are speculated to be the propelling force.
Crypto Adoption Surges as China and U.S. Dip in Global Adoption Rankings
Cryptocurrency adoption has massively surged over the past few years. Several emerging economies have come forth and adopted digital assets in some way or other, which reflects that cryptocurrency has gradually become a global phenomenon.
The Chainalysis report highlights that global adoption has risen by 2300% since Q3 2019 and over 881% in the last year. At the end of the second quarter in 2020, the adoption stood at 2.5% and surged to 24% by the end of Q2 2021. The major reasons for this adoption surge are — people starting to treat crypto as a store of value. They send, receive and carry out business transactions via digital assets. Besides this, the crypto adoption in regions like Eastern Asia, North America, and Western Europe are being largely powered by institutional investments.
Recently, Messari released data revealing that Asia accounts for nearly half of all digital asset trading including 90% of all volume above $10,000. The trading activity in Asia is equivalent to Europe and the United States combined, with Asian companies being mainly fond of derivatives – accounting for 94% of BTC and 98% of ETH futures volumes.
Chainalysis has also ranked emerging economies including Kenya, Nigeria, and Venezuela high on its index as they retain enormous transaction volumes on P2P platforms. As posted by the company, many residents in these regions don’t have access to centralized exchanges and thus, they use P2P crypto exchanges as their primary on-ramp into cryptocurrency.
Interestingly, last year, China ranked fourth while the U.S. ranked sixth. This year, the U.S. ranks 8th while China ranks 13th on the global adoption index. The biggest reason for the dip in ranking for both countries is speculated to be their government’s efforts to clamp down and regulate the entire crypto space.