The global adoption list is typically dominated by emerging markets. According to the most recent report by Chainalysis, three stand out among the top 10: Vietnam gaining the top spot, the United States moving up to fifth place, and China entering the list.
The top five nations on the global crypto adoption index are Vietnam, the Philippines, Ukraine, India, and the United States, according to "The 2022 Geography of Cryptocurrency Report." According to the ranking of the total index, the top 10 are completed by Pakistan, Brazil, Thailand, Russia, and China.
Regarding adoption of bitcoin, Vietnam is ranked first for a second consecutive year. The country has a high purchasing power and a population-adjusted adoption of centralized, DeFi, and P2P crypto tools, according to the sub-rankings.
According to a 2020 survey, 21% of Vietnamese consumers reported using or owning cryptocurrencies.
According to local media reports, crypto-based games are popular among gamers and developers in Vietnam.
The Philippines is also worth mentioning as it made a big jump from 15th to second place.
"Both countries have similar growth drivers: play-to-earn (P2E) games and money transfers," the report said.
Meanwhile, the United States climbed the ranks. This year, they're in fifth place, up from eighth in 2021 and sixth in 2020.
Interestingly, although the U.S. ranks in the top three in other sub-indices, it ranks 111th in population- and purchasing power-adjusted P2P file-sharing penetration.
According to the report, this isn't surprising, as P2P exchange usage is highest in countries with low purchasing power.
"Perhaps most interesting is the fact that the United States is by far the highest ranked developed country on our index and, along with the United Kingdom, is one of only two countries in the top 20
China ranked 13th in 2021 and has risen to tenth this year, up from thirteenth in 2021. As shown by the sub-indices, China ranks second in terms of purchasing power-adjusted transaction volume at total and retail level.
According to the report, while the ban initially led to a significant decline in crypto activity, the Chinese market has rebounded in recent months, suggesting that the ban may be ineffective or implemented too laxly.
In 2021, "emerging markets dominate the index," Chainalysis said, a certain pattern has strengthened. According to their income levels and economic development, the survey categorizes countries as high-income, upper-middle-income, lower-middle-income, and low-income using a framework developed by the World Bank.
- The top of our ranking is dominated by the two middle categories, according to the report. The following 20 countries are among the top performers:
- Vietnam, the Philippines, Ukraine, India, Pakistan, Nigeria, Morocco, Nepal, Kenya, and Indonesia are middle-income countries;
- Brazil, Thailand, Russia, China, Turkey, Argentina, Colombia, and Ecuador are middle-income countries;
- The United States and the United Kingdom belong to the high-income countries.
- to make remittances;
- to preserve their savings during volatile times of fiat currencies;
- to meet additional financial needs unique to their economies
The report's conclusion is,
These countries also tend to rely more on Bitcoin and stablecoins than other countries.
Slow adoption and robust market fundamentals
Last year, global crypto adoption reached a plateau. According to Chainalysis, it rose steadily from mid-2019, peaked in the second quarter of 2021, and then fluctuated in waves, declining and recovering quarter by quarter. It's declined in the last two quarters as the bear market began.
Still, it's important to remember that global penetration is still well above pre-bear market levels in 2019, according to Chainalysis.