Chainalysis report shows crypto went ‘global” in 2021

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The blockchain is an immutable record. Chainalysis is a company that interprets this data and extracts value from it. Chain analysis shows that crypto is “now”It is a global phenomenon.“The data comes from Chainalysis Global Crypto Adoption Index 2021. The people who really need crypto, referred to as “emerging markets” in the paper, are increasingly involved in the space.

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The Weekly Update features our friends at Arcane ResearchThat was the title.

“Chainalysis further ranked the countries with the highest crypto adoption according to their methodology. The majority are emerging market economies.

To clarify their intent, the Chainalysis article begins with:

“While professional and institutional markets are crucial, we want to highlight countries with the greatest adoption of cryptocurrency by ordinary people, and focus on use cases related to transactions and individual savings. “

However, we must talk about…

BTC price chart on Bitstamp | Source: BTC/USD on

What was Chainalysis’s methodology?

The company focused on “Ordinary people can adopt cryptocurrencyThey weighed everything using purchasing power parity per head. They classified “The 154 countries»According to three metrics:

  1. Received On-chain cryptocurrency valueAdded to the total by purchasing power parity per capita.
  2. Transferring chain retail valueAdded by PPP per capita.
  3. Volume of peer to peer exchanges (P2P).Added by PPP per capita and number of Internet users.

It is worth noting, however, that in the third they “For each country’s P2P trade volume, you can rely upon data provided by Paxful and LocalBitcoins, two of the largest P2P platforms.. “Because P2P trading is not chain-thought. Chainalysis admits this”We are not capturing all P2P value. However, we believe these two exchanges are sufficiently popular that their metrics serve as an approximation.

DeFi is not included in the studio. Upcoming statistics on DeFi

It is important to note that “DeFi protocol users’ transactions appear to be linked, since no central service ever has custody of user assets.“This created a problem as it” skewed “their rank” to countries with comparatively higher DeFi users. Chainalysis decided to keep DeFi stats from this particular studio.

But they do promise.We’ve also decided that a new DeFi Adoption Index will be created. This index will be available in coming weeks.

Global Crypto Adoption Index Chart - Arcane Research

Global Crypto Adoption Index 2021 | Source: Arcane Research

Three key trends were identified by chain analysis

Chain analysis reveals:

  • Global adoption of cryptocurrency is on the rise

Although it may seem obvious, the astonishing numbers behind this statement are quite surprising.

“At the end of Q2 2020, after a period of weak growth, total global adoption stood at 2.5 based on our summary country index scores. This total score stands at 24 at the end of the second trimestre of 2021. This indicates that global adoption has increased more than 2,300% from the third quarter 2019 and more than 881% over the last year. “

  • P2P platforms increase adoption in emerging markets

Not everyone can access a globally accepted bank account. People who don’t have access to centralized crypto exchanges have found a way of participating in the cryptocurrency space. It’s a huge way to do it.

  • Our rankings show that China is falling behind the United States.

It’s not surprising that “The analysis shows that P2P volumes have decreased in both countries relative to global volumes.Chainalysis says that other factors indicate that:

“This activity may reflect a growing professionalism of cryptocurrency trading in America and, in China, may be connected to ongoing government crackdowns on crypto trading.”

Why is the Chinese abandoning P2P commerce so dramatically? What is the “”The government is cracking down on cryptocurrency trading“Is it rather causing an increase in old P2P exchanges?

Related reading: Chainalysis – 2020 is the year for the Bitcoin institutional investor| Chainalysis: 2020 is the year of the Bitcoin institutional investor

Chainalysis concludes their study with:

“The takeaway is this: Cryptocurrency adoption has exploded over the past twelve months, and the variation across contributing countries shows that cryptocurrency is a truly global phenomenon. “

We couldn’t agree more. He is.

Global Crypto Adoption Index - Chainalysis

 Source:| Source: Chainalysis
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