Recent data by Chainanalysis has shown that the two superpowers, China and the United States, are behind in the global crypto adoption index, with emerging markets like Nigeria, Kenya and Vietnam taking the lead.
According to the previous ranking, China and the United States were previously ranked 4th and 6th, however, both countries now have dropped to the 13th and 18th positions. On the other hand, countries that could be termed as emerging markets occupy the first three positions on the Chainalysis ranking.
Per the report, issues like currency devaluation as well as the limit to which these countries could use their national fiat currency for international transactions and remittance played a role in helping these countries overpower those countries with better economies.
P2P Trading Aided the Surge
Another reason given for this growth is that many citizens in these countries use crypto assets as a way of hedging their savings against devaluation as well as the massive transaction volume the countries have recorded via peer-to-peer platforms. P2P is commonly used by these crypto market players as an alternative to centralized exchanges which the majority of them do not have access to.
While the emerging markets are moving ahead of the two rich countries, their sudden dip has been credited to the drop in their P2P trade volume. In this category, China fell from 53rd to 155th, while the U.S. fell from 16th to 109th.
Cumulatively, cryptocurrency adoption has surged exponentially with over 800% on the worldwide index. Further data reveals that at the close of Q2 in 2020, global adoption stood at 2.5. On the contrary, the figures jumped in the same quarter this year by nearly 10times to 24. With Q3 of 2019, and now, it has grown by over 2300%.
It is also important to add that Central and Southern Asia, Latin America, and Africa account for a considerable portion of web traffic to P2P services’ websites than regions whose countries tend to have larger economies, such as Western Europe and Eastern Asia.
Conclusively, Chainanalysis data also answers the drive of the next wave of adoption. It cited DeFi as the driver of cryptocurrency usage in the advanced world, while P2P platforms are driving new adoption in emerging markets.