The Chainalysis Global Crypto Adoption Index shows that lower middle income countries show greatest recovery in grassroots crypto adoption.
Blockchain analysis firm Chainalysis recently unveiled its 2023 Global Crypto Adoption Index, which highlight countries where average everyday people are embracing crypto the most. The index ranks countries globally by their level of grassroots cryptocurrency adoption.
This year, emerging markets in Asia Pacific topped the list — driven by the gaming-crypto economy and the growing popularity of stablecoins as an inflation hedge. The Central and Southern Asia and Oceania region dominates the 2023 Index, with six of the top ten ranking countries located in the region and a number of unique factors driving each country’s ranking. This includes the gaming-driven crypto economy in the Philippines; the popularity of stablecoins amid rapid inflation in Pakistan; and India’s booming crypto economy despite a challenging regulatory and tax environment.
The Global Crypto Adoption Index is made up of five sub-indexes with each of those sub-indexes is based on countries’ usage of different types of cryptocurrency services. The sub-indexes are then calculated by estimating countries’ transaction volumes for different types of cryptocurrency services and protocols based on the web traffic patterns of those services’ and protocols’ websites.
There has been a recovery in adoption since the bear market with lower middle income (LMI) countries have seen the greatest recovery in grassroots crypto adoption over the last year. With over 40% of the world’s population live in LMI countries, this could be promising for the future of crypto.