India Tops Global Crypto Adoption, DeFi and NFT Growth Noteworthy; Chainalysis Reports
Summary:
Chainalysis reports India leads the globe in cryptocurrency adoption, followed by Nigeria and Vietnam, while North America contributes nearly a quarter of all cryptocurrency transactions. Lower-middle-income countries have demonstrated increased crypto adoption since the second quarter of 2022. The growth of Decentralized Finance (DeFi) has been significantly noted in various regions, with France leading. Meanwhile, regulations in China have decreased Eastern Asia's transaction volume, but the country still generated over $75 billion in exchanges. In the Middle East and North Africa, Turkey and Saudi Arabia showed significant upsurge in crypto activities. Latin America also saw a rise in crypto transactions, led by Argentina and Brazil.
As per a recent report by Chainalysis, India tops the global list in cryptocurrency usage, followed by Nigeria and Vietnam. Notwithstanding, close to a quarter of all cryptocurrency transactions are based in North America, with the United States holding the highest score. The report utilized data from 13 billion web visits across five categories of activities, adjusted for purchasing power parity (PPP) per capita to measure crypto adoption. Consequently, countries with lesser PPP per capita would rank higher for an equivalent cryptocurrency received.
Despite an overall decrease in crypto adoption worldwide, there is a notable surge in lower-middle-income countries, including India, Nigeria, and the fifth position holder, Ukraine. Such nations accommodating 40% of the world's population have seen the highest uptake in crypto usage since the second quarter of 2022, once global usage started to decline. This exhibits a promising future for the crypto industry, where lower-income countries hint at increased crypto adoption due to their burgeoning industries and populations.
Regions such as Central, Northern, and Western Europe, Central and Southern Asia and Oceania, and North America are the leading sources of cryptocurrency transactions. Meanwhile, North America, despite a significant presence in the market by volume, has noticed a decline in institutional transaction volume from April onward. A remarkable plunge was also observed in stablecoin volume in the overall crypto volume share.
Central, Northern, and Western Europe contributed to 17.6% of crypto received, with the UK generating twice the volume of the next-in-line, Germany. However, it stood 14th globally in terms of adoption. Despite holding the 14th rank, the noteable fact is that France headed the DeFi growth sector.
In Eastern Europe, Central and Southern Asia and Oceania, and Central, Northern, and Western Europe, there was significant growth in the Decentralized Finance (DeFi) sector in the year ending June 2023. Central and Southern Asia and Oceania contributed to 19.3% of the total crypto value received by exchanges. India stood first, ahead of Vietnam by around 100%.
The regulations imposed in China since 2020 brought down the Eastern Asia transaction volume. Regardless, China generated over $75 billion in exchanges, with the majority of it through centralized exchanges.
In the Middle East and North Africa, there was a massive increase in web traffic to Non-Fungible Token (NFT) platforms in Turkey. Simultaneously, Saudi Arabia led regarding transaction growth, rising by 12%. Nigeria, dominating the sub-Saharan region in transaction volume, accounted for 2.3% of the global volume. Bitcoin emerged as the most popular cryptocurrency in this region.
In Latin America, Argentina and Brazil were the primary contributors to crypto transactions. The report recognizes crypto's potential in providing a safeguard against inflation in these regions.
Published At
10/23/2023 8:26:17 PM
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