Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Worldwide Crypto Adoption Skyrockets Over 880% In One Year

CryptocurrencyAug 23, 2021 08:00AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
Worldwide Crypto Adoption Skyrockets Over 880% In One Year

  • The worldwide adoption of cryptocurrencies has increased by over 880% in the last year.
  • The spike in crypto adoption has been attributed to the growth of P2P trading activity.
  • Emerging economies lead the adoption of cryptocurrencies so far in 2021.
  • China, the United States, Ukraine, and Russia have been displaced as the countries with the highest crypto adoption.

A long-standing issue in the crypto space has been the mass adoption of digital assets. Since its inception in 2009, we’ve seen cryptocurrencies used as payment mediums in national central banks, institutional investor involvement, banks, social media, and entertainment.

The quest for global adoption is in pursuit of normalizing the use of cryptocurrencies. A new report from Chainalysis suggests that the industry is closer to reaching this goal than it has ever been before.

Cryptocurrency Adoption Skyrockets By 880%

According to the report, 2021’s Global Crypto Adoption Index, the worldwide adoption of cryptocurrencies has increased by over 880% in the last year (July 2020 – July 2021). The paper also suggests that the global adoption of crypto is up by an astonishing 2,300% since the third quarter of 2019.

The research notes that the spike in crypto adoption is mainly due to peer-to-peer (P2P) trading activities, and Bitcoin’s nature as a store of value, free from government control.

The Global Crypto Adoption Index ranks 154 countries by several metrics including; total on-chain activity, the activity of retail and non-professional crypto users, and is weighted by purchasing power parity per capita.

Global adoption of cryptocurrency: Source Chainanalysis

Hands Are Changing

The research revealed that in 2020, China ranked fourth on the crypto adoption list, while the United States came in at sixth. However, things have changed in 2021, with China now at thirteenth, and the United States, eighth.

A comparison of the global crypto adoption index for 2020 and 2021. Source Chainanalysis.

Ukraine, Russia, and Venezuela, which were the leaders of crypto in 2020, have all been displaced. Ukraine has moved down from 1st to 4th, Venezuela, which was ranked 3rd, now ranks 7th, and Russia, which occupied 2nd in 2020, doesn’t feature in the top 10 for 2021 at all.

The reason for China’s drop is quite apparent. The Chinese crackdown on cryptocurrencies, mining activities, and crypto exchanges have all taken their toll on the use and adoption of cryptocurrencies in the country.

On The Flipside

  • As the adoption of cryptocurrencies increases, so has interest from regulatory agencies.
  • In an audit of all crypto exchanges operating in South Korea, conducted by the Financial Services Commission (FSC), all of the exchanges failed their regulatory audits.

Emerging Economies are Picking up Cryptocurrencies

An interesting piece of information in the report is the increasing adoption of cryptocurrencies in economically “smaller” countries. This is quite unlike previous years in which crypto adoption was dominated by the developed economies of the world.

Asia now leads the adoption of cryptocurrencies, with Vietnam, India, and Pakistan being the three leading countries by use of cryptocurrencies.

Overall, the paper highlights that much poorer countries, which have little access to financial services, have turned to cryptocurrencies to be banked.

In explaining the rise of P2P trading in smaller countries, Chainanalysis notes that;

“P2P transaction volume for the U.S. and China moved roughly in line with the worldwide total until they began to diverge around June 2020. At that point, the U.S. and China see their P2P transaction volume shrink as the rest of the world grows.”

Why You Should Care?

  • The widespread use of crypto tells different stories about the dynamics within different countries.
  • The increasing rate of adoption shows that digital assets are becoming deeply embedded in the financial systems of the world.

EMAIL NEWSLETTER

Join to get the flipside of crypto

Upgrade your inbox and get our DailyCoin editors’ picks 1x a week delivered straight to your inbox.

[contact-form-7] You can always unsubscribe with just 1 click.

Continue reading on DailyCoin

Worldwide Crypto Adoption Skyrockets Over 880% In One Year
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email