Blockchain analysis firm Chainalysis has released its fourth annual Global Crypto Adoption Index, which measures grassroots crypto adoption around the world by combining on-chain data and real-world data. The index focuses on highlighting countries where average individuals are embracing cryptocurrency the most, rather than countries with the highest transaction volumes. The methodology includes five sub-indexes that rank countries based on their usage of different types of cryptocurrency services.
The index takes into account factors like population size, purchasing power, and internet usage to calculate the rankings. Each country is assigned a score between 0 and 1, with a higher score indicating a higher rank in the index.
The report reveals that Central & Southern Asia and Oceania (CSAO) region dominates the top of the index, with six out of the top ten countries located in that region. These countries are India, Vietnam, the Philippines, Indonesia, Pakistan, and Thailand.
Additionally, the paper emphasizes that the circumstances driving adoption in each CSAO country are unique, leading to different usage trends and preferences for specific services.
Stronger recovery
While global grassroots crypto adoption has seen a decline, lower middle-income (LMI) countries have experienced a stronger recovery. LMI countries have shown the greatest recovery in grassroots crypto adoption over the past year, and many of the top-ranking countries in the Global Crypto Adoption Index fall into this category. This trend is promising for the future of crypto, as LMI countries often have growing industries and populations.
Read more: Using on-chain data to assess market risks, opportunities for crypto assets
Institutional adoption
The report also highlights the importance of institutional adoption, which continues to gain momentum in high-income countries. The combination of bottom-up grassroots adoption in LMI countries and top-down institutional adoption paints a promising picture for the future of cryptocurrency.
Different factors
Within the CSAO region, different factors are driving adoption in different countries, resulting in variations in usage patterns for different types of cryptocurrency services. Centralized exchanges dominate web traffic in all countries, but other activities like gaming and gambling platforms and peer-to-peer exchanges also play a significant role in some countries.
The report delves into specific countries within the CSAO region, such as the Philippines and Pakistan, to explore their adoption drivers and usage patterns. It also highlights India as the country leading the world in grassroots crypto adoption.
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