Vietnam Confirms Global Leadership in Cryptography: Sequence Analysis

Vietnam Confirms Global Leadership in Cryptography: Sequence Analysis

The latest Chainalysis report, called the 2022 Global Crypto Adoption Index, revealed that digital asset adoption has slowed in the past 12 months due to the crypto winter but is still above pre-bullish levels.

Vietnam ranked first from 2021, while the Philippines and war-torn Ukraine followed soon after. Interestingly, China (where interest in bitcoin has fallen dramatically due to the ban on cryptocurrencies in 2021) is back in the top ten.

New trends

After steady growth since mid-2019, the global adoption rate of cryptocurrencies has slowed, according to Chainalysis. Recent Research.

The entity applied its benchmark methodology to 154 countries and estimated that Vietnam is once again the world’s leading cryptocurrency adopter, with a score of 1,000. One of the reasons for the country’s second consecutive win may be the huge interest in blockchain-based games in the Southeast Asian region.

Another Chainalysis study found that 21% of Vietnamese consumers have used or owned a digital asset at some point during their lives. The first place goes to Nigeria, where 32% of the local population deals with bitcoin or cryptocurrency.

The second place in the “Global Crypto Adoption Index 2022” with a score of 0.753 belongs to the Philippines, while Ukraine came in third place with 0.694. The military conflict with Russia has severely disrupted the Ukrainian economy, which may explain why some residents have decided to interact with digital currencies instead of fiat currencies.

In general, the majority of the countries in the top 20 list include lower middle income economies (Vietnam, the Philippines, Ukraine, Nigeria, and Indonesia) and upper middle income countries (Brazil, Thailand, Argentina, and Turkey).

However, two high-income countries – the United States of America and the United Kingdom – also found a place in the leaderboard as the fifth and seventeenth, respectively.

It is noteworthy that China has shown some improvement. Due to the local government’s blanket ban on all cryptocurrencies last year, the country ranked 13th in 2021, while in the past 12 months it has moved up the ladder and is now 10th.

HODLers remain committed despite the market downturn

In addition to the above numbers, Chainalysis notes how the global cryptocurrency adoption rate has changed since the second quarter of 2021. At the time, it was at an all-time high, primarily driven by the price hike of most digital assets.

After that period, the numbers moved in waves. When prices fell in the third quarter of 2021, global crypto adoption also waned, while in the fourth quarter, Bitcoin and many other coins benefited from ATH, it stands to reason that consumer interest in the sector surged again.

So far, 2022 hasn’t been this dynamic due to the bear market that has dominated the greater part of the year. Despite this negative trend, Chainalysis stated that global cryptocurrency adoption remains well above pre-market levels from 2020.

The entity concluded that many HODLers do not see the economic downturn as a major challenge and do not plan to sell their holdings:

“Large, long-term cryptocurrency holders have continued to hold out in the bear market, so while their portfolios have lost value, these losses are not yet capped because they haven’t sold – the on-chain data indicates that these holders are optimistic that the market will bounce back, keeping healthy Relative market fundamentals.

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