The growth, seen since 2019, has been 2,300%.
In emerging markets such as Latin America, the P2P bitcoin trade stands out.
The adoption of bitcoin and other cryptocurrencies has taken a new leap so far in 2021. According to data from the research firm Chainalysis, the use of cryptocurrencies has increased by up to 881% between 2020 and this year.
“Our data shows that residents of more and more countries around the world are either immersing themselves in cryptocurrencies or seeing an increase in existing adoption,” Chainalysis notes in the excerpt from its geographic report on cryptocurrencies. Said report, in its full version, will be published next September.
Signature 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 on the volumes of exchange in exchanges P2P.
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 overall, while in 2019 it was just over 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.
In emerging markets, many are turning to cryptocurrency to preserve their savings against currency devaluation, send and receive remittances, and conduct business transactions, while adoption in North America, Western Europe, and East Asia over the past year has been it has been driven largely by institutional investment.
P2P trading: driver of emerging markets
While the general reasons vary, Chainalysis identified a common factor for the use of bitcoin and cryptocurrencies in emerging markets. Research highlights the appearance in the top of nations like Vietnam (leader of the ranking), Kenya, Nigeria and Venezuela. As CriptoNoticias reported earlier, the South American country went from third to seventh place between 2020 and 2021, although its citizens continue to find new use cases for cryptocurrencies.
The analysis shows that in these nations the majority of P2P trade stands out. Citizens use these markets “as their main route 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 purchase cryptocurrencies on P2P platforms to preserve their savings.
In contrast to the rise of emerging markets, the new Chainalysis ranking highlights the fall of Russia, China and the United States compared to last year. To a large extent, this could be due to restrictive and regulatory advances in such countries against bitcoin and other cryptocurrencies.