Chainalysis: Ukraine beats Russia, China, and more in the Global Crypto Adoption Index in 2020
According to Chainalysis, based on the Global Crypto Adoption Index 2020, Ukraine is the first country in the ranking with a maximum score of 1. It is followed closely by Russia with 0.931 points. Most surprising is that Venezuela is not inferior.
Top 10 countries that accept cryptocurrencies | Source: Chainalysis
Ukraine beats Russia, China, and more in the Global Crypto Adoption Index in 2020
The indicators of Chainalysis are synthesized from many pieces of information, including transaction volume, frequency, and frequency. In it, the Index looks at three on-chain metrics: the total value of on-chain crypto transactions weighted by purchasing power per capita (PPP), the value of on-chain retail transfers weighted by PPP, and the number of on-chain crypto deposits weighted by the number of internet users. The Global Crypto Adoption Index 2020 also factors in the volume of trades made on P2P crypto exchanges weighted by both the number of internet users and PPP.
The report shows uneven development in the cryptocurrency sectors of many countries, with the per capita weight of the index ranking China inferior in the number of on-chain deposits and P2P transactions due to its large population – drags the country down to the fourth place. However, China dominates the ranking on the chain by both retail and total value. In contrast, the two top-performing countries by P2P exchange volume, Kenya and Venezuela, both rank in the top five as a whole, although not ranking in the top 10 according to any other metrics.
However, the emphasis on P2P volume may bypass the establishment of locally regulated exchanges as an indicator of cryptocurrency adoption and skew results in favor of countries development lacks a robust financial sector – potentially contributing to the United States ranking below Kenya despite outperforming the African nation in three out of four criteria.
Chainalysis describes Venezuela as follows:
“Venezuela is as an excellent example of the forces that drive cryptocurrency adoption within emerging countries. Our data shows that Venezuelans use cryptocurrency more when the country’s native fiat currency is losing value to inflation, suggesting that Venezuelans turn to cryptocurrency to preserve savings they may otherwise lose.”
The report gave some surprising insights, with Vietnam ranked second in terms of both retail value and all on-chain transactions despite initial attempts by local authorities to crackdown cryptocurrency.
No Western European country has ranked in Chainalysis’s list of top ten countries for crypto adoption.
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