Cryptocurrency is seen as an option in currency-devalued countries
An 880 percent jump in worldwide cryptocurrency adoption was recorded since 2020, with Vietnam, India, and Pakistan leading the adoption rate country-wise.
While Vietnam is at the top of the pack, India is second on the list. Blockchain analytics firm Chainalysis reported that Vietnam is the leading adopter with an index score of 1. The rating was based on the adoption rate based on on-chain cryptocurrency value received, on-chain retail value transferred, and peer-to-peer exchange trade volume between June 2020 and June 2021.
The cryptocurrency boom places India in the second slot in the adoption rate
India is just behind with a score of 0.37. Other countries with significant rankings include Pakistan (0.36), Ukraine (0.29), and Kenya (0.28).
A MensXP report quoting the Chainalysis findings pointed out that India’s index score rode on a massive boom in demand for cryptocurrency. While Ukraine was on top of the list as per the previous index, India and Pakistan have surged ahead to perch comfortably on slots two and three in terms of adoption rate.
Also significant is that economic majors such as the United States and China are placed in the eighth and 13th slots, respectively. This underlines the domination of emerging markets in the cryptocurrency segment.
Cryptocurrency adoption fuelled by the devaluation of native currencies
The massive devaluation in their coins might be seen as the reason for the boom in cryptocurrency adoption in emerging economies. When people look for alternatives, cryptocurrencies offer an option; it has been noted.
The Chainalysis index has also has ranked countries by peer-to-peer (P2P) exchange trade volume, weighted by purchasing power parity per capita and the number of internet users.
As per Forkast’s findings, global crypto adoption saw a rise of over 2,300