The global crypto adoption index has declined in 2022 amid a bearish market trend and a prolonged crypto winter.
According to the latest market research by Chainalysis, the cryptocurrency adoption rate this year has begun to plummet amid a bearish trend in the market. The average global crypto adoption index in 154 countries has fallen to Q1 2021 levels.
2021 proved to be the most dynamic year for the crypto market, and the adoption rate of cryptocurrency initiatives increased almost one and a half times.
However, Chainalysis analysts argue that despite the slowdown, crypto-asset holders generally remain optimistic, which “keeps market fundamentals relatively healthy.”
Vietnam leads the list of countries with the highest crypto adoption rates. Notably, the state took the lead for the second consecutive year. Chainalysis reports that Vietnamese crypto users demonstrate extremely high purchasing power.
The top 5 countries with the highest crypto adoption rates in 2022 also include:
- Philippines;
- Ukraine;
- India;
- The U.S.
Despite its fourth place in the global ranking, India has become a leader in using centralized and DeFi platforms. This trend may be due to stricter oversight of cryptocurrencies by local authorities, which provoked an inflow of users to crypto exchanges approved by the legislature.
The legalization of cryptocurrencies in Ukraine this year has lifted the country in the ranking by one point. The Philippines has made the greatest leap in the ranking, taking second place in 2022, though it ranked only 15th in 2021.
While Nigeria has seen an increase in cryptocurrency users, the country dropped five spots in the global rankings, taking only 11th place in 2022. Interestingly, the top 10 ranking includes countries with tougher government policies on cryptocurrencies this year. For example, Thailand (8th place) and China (10th place). The analysts conclude that these countries’ performance growth is directly related to CBDC developments, increasing citizens’ awareness of blockchain technology and digital assets.
Germany, recognized as the most crypto-friendly with the lowest taxes on cryptocurrency, isn’t included even in the top 20 countries with the highest crypto adoption rates.
