Kenya, South Africa and Nigeria made the list of the top 10 countries of Chainalysis’s Global Crypto Adoption Index.
Based off the recent data published by Chainalysis. Kenya, South Africa and Nigeria occupied the number five, seven and eight positions respectively. While Ukraine, Russia and Venezuela occupied the number one, two and three positions surprisingly ahead of China which occupied the fourth position.
The Global Crypto Adoption Index ranking is based on four metrics and each of the 154 countries are ranked according to each country’s ranking in all four, and then normalize that final number on a scale of 0 to 1 to produce the overall rankings. Now, the closer a country’s final score is to 1, the higher its position in the index.
Here are the four metrics:
- On-chain cryptocurrency value received, weighted by purchasing power parity (PPP) per capita.
- On-chain retail value transferred, weighted by PPP per capita.
- Number of on-chain cryptocurrency deposits, weighted by number of internet users.
- Peer-to-peer (P2P) exchange trade volume, weighted by PPP per capita and number of internet users.
Key insights from the top ten
- Developing countries have the highest P2P trading volume.
- Cryptocurrency adoption is growing.
- Cryptocurrency awareness is high in developing countries.
Chainalysis described Venezuela as an excellent example of what drives cryptocurrency adoption in developing countries and how citizens use cryptocurrency to mitigate economic instability.
Chainalysis suggests that based on their data and interviews, some residents in many developing countries use cryptocurrency to carry out commercial transactions. For instance Venezuelans use cryptocurrency more than their native fiat currency due to inflation. The pattern is also almost the same in other Latin American countries, Africa and East Asia.