Crypto adoption across the globe has accelerated over the past two years due to multiple bull rallies. With the recent bear market, there has been a drop in the adoption rate, and it has stabilized over the past couple of months. However, there are some parts of the world where the adoption rate continues to increase. A recent report by Chainalysis examines the global adoption trend, which found middle-income countries are driving adoption.
Middle-income countries take the lead
The Chainalysis report found that of the top 20 countries driving crypto adoption across the globe, the vast majority were middle-income countries. Now, to put that into perspective, the World Bank classifies countries by income levels, and they currently have four income levels; high income, upper middle income, lower middle income and low income. Both of these category averages have proven to be a hotbed for crypto adoption.
The 2022 Chainalysis Global Crypto Adoption Index saw Vietnam land 1st place in adoption. The Philippines placed 2nd, while Ukraine, India and the United States rounded out the top 5 respectively.
Market cap falls to $932 billion | Source: Crypto Total Market Cap on TradingView.com
Further down the list, a total of 10 of the top 20 countries, namely; Vietnam, the Philippines, Ukraine, India, Pakistan, Nigeria, Morocco, Nepal, Kenya and Indonesia were all lower middle income countries. Eight others, including Brazil, Thailand, Russia, China, Turkey, Argentina, Colombia and Ecuador, were all upper-middle-income countries. Only two of the top 29 countries were high-income countries, namely the United States and the United Kingdom.
Crypto adoption is not over
Even though crypto adoption has slowed in the bear market, it is still maintaining good levels at this point. Even after stabilizing in 2022, the overall crypto index score still puts the adoption rate higher than it was before the recent bull run.
Cryotop adoption levels out | Source: Chainalysis
This shows that the interest still remains high despite the drop in prices in the market. However, this is a far cry from the record highs seen in the second quarter of 2021. What this shows is that more investors are entering the market when prices are rising, which is hardly a surprise. But the numbers, even during the bear market, show that the investor retention rate is much higher than in previous bear markets.
Adoption rates in continents like Africa and Asia are also the most promising. Nigeria has become the country with the highest percentage of the population that uses or owns cryptocurrencies at 32%. At the same time, Vietnam is the second highest with 21%.
Brazil, which came 7th on the global adoption rate list, now has the largest crypto market in Latin America. The United States has moved up three places compared to 2021, from 8th position last year to 5th position this year.
Featured image from Tekedia, chart from TradingView.com
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