Chainalysis, a blockchain data platform, has released its 2021 Cryptocurrency Aboption Index. It ranks 154 countries based on crypto adoption. According to the firm’s 2021 Cryptocurrency Adoption Index, global crypto adoption has increased more than 2,300% from the third quarter 2019 and more that 881% over the past year.
New Global Cryptocurrency Adoption Index
Chainalysis published a Wednesday report. OverviewThe company’s 2021 Geography of Cryptocurrency Report will be published in September. The report contains the “2021 Chainalysis Global Crypto Adoption Index,” the company’s second iteration “to measure grassroots cryptocurrency adoption around the world”.
The company’s blockchain data analytics company explained that the Global Crypto Adoption Index is composed of three metrics. The first is the value of on-chain crypto received, weighted according to purchasing power parity per capita. The second is the “retail value transferred to the chain”, weighted using PPPs/capital” and the third is the “volume of peer-to-peer trading (P2P), weighed by PPPs/capital and the number of Internet users “.
Chainalysis stated that the largest change to its crypto adoption index methodology since last year’s index was the elimination of the “number” fourth measure. Deposits per country weighted [the]Number of Internet users The company describes:
We rank the 154 nations based on these three metrics. Then, we take the geometric average of each country’s ranking in each of the three metrics and normalize that number on a scale from 0 to 1. This gives each country a score that determines its ranking. The general rule is that the closer a country’s final score to 1 is, the higher their ranking. The higher the ranking, based on the country’s final score closest to 1.
According to the 2021 Global Crypto Adoption Index Vietnam ranks number one, followed by India and Pakistan, Ukraine, Kenya and Nigeria. Venezuela is number two.
The new ranking includes the United States and China. China ranked fourth in the overall rankings last year, while the United States ranked sixth. The United States is currently ranked eighth, while China is ranked thirteenth. “The main reason the two countries fell is that their ranking in weighted P2P trading volume for the Internet-using population has dropped significantly – China has fallen from 53rd in this component to 155th, while the United States United went from the 16th to the 109th, “detailed Chainalysis.
“Growing volume transactions for centralized services and explosive rise in the challenge [decentralized finance] are driving the use of cryptocurrency in the developed world and in countries that have already had substantial adoption, while P2P platforms are driving further adoption in emerging markets, ”the company explained, adding:
Over the past twelve months, cryptocurrency adoption has risen dramatically. The diversity in contributing countries shows that cryptocurrency truly is a global phenomenon. Global adoption has increased by more than 2 300% since the 3rd quarter of 2019, and by more than 881% last Year.
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