Amid a massive bull run in crypto assets this year, India has ranked second in crypto adoption globally. Much of this good news stems from the fact that India’s younger population, especially between the age of 18 and 32, are finding crypto to be a very attractive asset to invest in.
According to a report by Chainalysis, a leading blockchain data platform, crypto adoption saw worldwide growth of over 881% in 2021. Meanwhile, global adoption grew by a whopping 2300% since the third quarter of 2019.
The Global Crypto Adoption Index developed by Chainalysis ranks 154 countries to study the adoption of cryptocurrencies globally.
Taking a major turn from last year, this year’s index indicates that emerging countries like India, Vietnam, and Pakistan have the highest rate of crypto adoption. In 2020, Vietnam was ranked number 10 whereas India and Pakistan did not make it to the top 10. However, Vietnam, India and Pakistan have respectively grabbed the top 3 spots for 2021.
(Global Crypto Adoption Index (2020 vs 2021). Image: Chainalysis)
Meanwhile, Ukraine, Russia, and Venezuela – the leaders of 2020 – have slid down considerably. The obvious missing case from this year’s chart has been China (from 4th position in 2020). China’s disappearance from the top 10 is only logical considering its severe clampdown on the crypto industry.
The emerging economies outperforming the fiat-rich developed countries is good news. However, the icing on the cake for crypto enthusiasts lies elsewhere. Faster crypto adoption among smaller countries like Nigeria, Kenya and Togo gives crypto its true shine. Even amidst a crackdown, peer-to-peer bitcoin trading in Nigeria has grown to $204 million, the largest among all of Africa.
Why the Sudden Surge in Crypto Adoption?
P2P (Peer-to-Peer) Trading is the primary force behind crypto’s surge in global popularity. Chainalysis noted that the root cause behind the sudden interest in Bitcoin trading could be the present global financial crisis and its impact on vulnerable economies.
Sharp devaluations and strong inflationary pressures have eroded purchasing power and people’s trust in fiat currency. To counter this, masses tend to look towards alternative assets that function as a store of value. Bitcoin is certainly a perfect candidate for many.
“Many emerging markets face significant currency devaluation, driving residents to buy cryptocurrency on P2P platforms in order to preserve their savings. Others in these areas use cryptocurrency to carry out international transactions, either for individual remittances or for commercial use cases, such as purchasing goods to import and sell”, as noted by Chainalysis.
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