The worldwide adoption of cryptocurrency has been accelerated in the past couple of years due to the multiple bull runs. With the recent bear market, there has been a decline in the adoption rate, and it has stabilized in the past two months. However, there are some parts of the world where the rate of adoption continues to show strong. A recent Chainalysis report goes into the global adoption trend, which found that middle-income countries are driving adoption.
Middle-income countries take the lead
The Chainalysis Report It found that among the top 20 leading countries in cryptocurrency adoption worldwide, the vast majority were middle-income countries. Now, to put this into perspective, the World Bank ranks countries on the basis of income levels, and it currently has four levels of income; High income, higher middle income, lower middle income, lower income. These two middle classes have proven to be a hotbed of cryptocurrency adoption.
The Chainalysis 2022 Global Crypto Adoption Index saw Vietnam take first place when it comes to adoption. The Philippines ranked second, while Ukraine, India and the United States completed the top five, respectively.
Market cap falls to $932 billion | Source: Crypto Total Market Cap on TradingView.com
Moving 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 lower middle income countries. Eight other countries, including Brazil, Thailand, Russia, China, Turkey, Argentina, Colombia, and Ecuador, were all upper-middle-income countries. Only two of the 29 high-income countries are the United States and the United Kingdom.
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Although the adoption of the cryptocurrency slowed down during the bear market, it is still maintaining good levels at this point. Even after settling in 2022, the global cryptocurrency index score still puts the adoption rate higher than it did before the recent rally in the rally.
Cryotop adoption levels out | Source: Chainalysis
This indicates that interest remains high despite the low prices in the market. However, it is a long way from the all-time highs recorded in the second quarter of 2021. What this shows is that more investors are coming into the market when prices are rising, which isn’t really surprising. But the numbers, even during a bear market, show that the retention rate of investors is much higher than in previous bear markets.
Cross-continental adoption rates such as Africa and Asia are also the most promising. Nigeria has emerged as the highest percentage of the population that uses or owns cryptocurrency at 32%. At the same time, Vietnam ranks second with 21%.
Brazil, which ranked seventh in the list of global adoption rates, now has the largest cryptocurrency market in Latin America. The US has advanced three times from 2021, moving from eighth place last year to fifth this year.
Featured image from Tekedia, chart from TradingView.com
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