Vietnam ranks first in the world in cryptocurrency adoption! The use of cryptocurrencies is becoming increasingly popular in emerging countries.

With the booming development of the blockchain industry, the use of cryptocurrencies is no longer limited to developed countries. With the help of P2P platforms, people around the world can enjoy the services and convenience brought by cryptocurrencies.

Cryptocurrency Adoption Index Ranking

Blockchain analytics company Chainalysis released a report yesterday titled "Global Cryptocurrency Adoption Index" which analyzes the cryptocurrency adoption status of various countries using three indicators:

• "On-chain cryptocurrency value received"
• "On-chain retail value transferred"
• "Peer-to-peer exchange trade volume"

The "On-chain retail value transferred" is defined as any cryptocurrency transaction valued below $10,000. These three indicators are weighted against the Purchasing Power Parity, taking into consideration the per capita wealth of each country. For example, in the indicator "On-chain cryptocurrency value received," if two countries receive an equal amount of cryptocurrency on-chain, the country with lower per capita Purchasing Power Parity will receive a higher score. The data of these three indicators are normalized to a range of 0 to 1, with a score closer to 1 indicating a higher ranking.

From the rankings, it can be seen that Vietnam currently ranks first in cryptocurrency adoption among countries, followed by India and Pakistan, with most of the top 20 countries being emerging markets in Central Asia, Western Asia, and Latin America.

Significant Adoption in Emerging Markets

The report also sums up the cryptocurrency adoption index of each country, showing a significant increase in cryptocurrency adoption over the past few quarters. Researchers pointed out: "In emerging markets, many people adopt cryptocurrency to preserve their savings in the face of currency devaluation, to send and receive remittances, and for conducting business transactions. The adoption in North America, Western Europe, and East Asia is mainly driven by institutional investments."

The report also mentions that the rapid increase in adoption rates in emerging markets is mainly due to the support of P2P platforms. As people in these regions often cannot use centralized exchanges, unregulated P2P cryptocurrency exchanges naturally become their primary gateway to acquiring cryptocurrencies.

From the chart showing the change in network traffic to P2P platforms, it is evident that Central Asia, South Asia, and Latin America have significantly higher network traffic sent to P2P platforms compared to Western Europe and East Asia.

Lower Rankings for the United States and China

Compared to the 2020 report, the rankings of the United States and China have both declined. The United States dropped from 6th place to 8th, while China fell from 4th to 13th. The main reason for this decline is the significant drop in the ranking of the "Peer-to-peer exchange trade volume" indicator, with the United States at 109th place and China at 155th.

From the chart showing the growth index of P2P platform trade volumes, it is evident that since July 2020, the P2P trade volumes in the United States and China are shrinking compared to growth in other regions. Researchers believe this phenomenon may reflect the increasing professionalism and institutionalization of cryptocurrency trading in the United States. In China, this could be related to the government's continued crackdown on cryptocurrency trading.

According to the data in this report, there has been significant growth in cryptocurrency adoption over the past year. Each country has regional differences in cryptocurrency trading channels and usage demands. Over time, the use of cryptocurrencies is expected to become more widespread in people's lives.