The firm’s data is based on the study of three specific indicators in a total of 154 countries. The analysis generates an index that goes from 0 to 1, based on the value transferred in general and retail, as well as the volumes of exchange in P2P exchanges.
The sum of the indices of all the countries analyzed generated a score of 24 at the end of the second quarter of 2021. The previous year, it was around 2.5 globally, while in 2019 it was just above 1. Since then, the increase in the global adoption rate is 2,300%, highlights the research.
Analysts point out that the reasons for this growth are the most varied depending on the particular cases of each country. For example, in emerging markets many turn to cryptocurrencies to preserve their savings against currency devaluation, send and receive remittances, and conduct business transactions.
By contrast, in more stable economies like North America, Western Europe, and East Asia, adoption has been driven largely by institutional investment.
While the general reasons vary, Chainalysis identified a common factor for the use of bitcoin and cryptocurrencies in emerging markets. The research highlights the appearance in the top of nations such as Vietnam (leader of the ranking), Kenya, Nigeria and Venezuela.
The analysis shows that in these nations the majority of P2P trade stands out. Citizens use these markets “as their main avenue of access to cryptocurrencies, often because they do not have access to centralized exchanges,” says Chainalysis, citing interviewees from each country.
Many emerging markets face significant currency devaluation, leading residents to buy cryptocurrencies on P2P platforms to preserve their savings.
In contrast to the rise of emerging markets, the new Chainalysis ranking highlights the decline in Russia, China and the United States compared to last year. To a large extent, this could be due to such countries’ restrictive and regulatory advances against bitcoin and other cryptocurrencies.