Chainalysis’s latest report, titled The 2022 Global Crypto Adoption Index, reveals that digital asset adoption has slowed over the past 12 months due to the crypto winter, but remains above pre-bull levels.
2021 front runner – Vietnam – takes first place again, soon followed by the war-torn Philippines and Ukraine. Interestingly, China (where interest in Bitcoin has plummeted significantly due to the 2021 crypto ban) has re-entered the top 10.
After steady growth since mid-2019, global cryptocurrency adoption has cooled, according to a recent study by Chainalysis.
The company applies its indexing methodology to 154 countries and estimates that Vietnam is once again leading the world in crypto adoption with a score of 1000. One of the reasons behind the country’s second consecutive win is the huge interest in blockchain-based games in the Southeast Asia region.
Another study by Chainalysis found that 21% of Vietnamese consumers have used or owned digital assets at some point in their lives. First place goes to Nigeria, where 32% of locals have transacted using bitcoin or altcoins.
The second place in the “Global Crypto Adoption Index 2022” with a score of 0.753 belongs to the Philippines, while third is Ukraine 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 currency instead of fiat currency.
Overall, the majority of countries in the top 20 include lower-middle income (Vietnam, Philippines, Ukraine, Nigeria, Indonesia) and upper-middle-income economies (Brazil, Thailand, Argentina, Turkey).
But two high-income countries – the US and UK – also found places in the rankings, taking 5th and 17th place, respectively.
It should be noted that China has shown some improvement. Due to the total ban on all things crypto imposed by local governments last year, the country was ranked 13th in 2021, while it has been climbing the ladder over the past 12 months and is now in 10th place.
HODLers stay engaged despite market crash
In addition to the figures above, Chainalysis is monitoring how the acceptance rate of global cryptocurrencies has changed since the second quarter of 2021. It hit an all-time high, driven mainly by rising prices for most digital assets.
After that, the numbers move in waves. As the price dropped in Q3 2021, global adoption of crypto declined, while Bitcoin and many other coins used the new ATH in Q4, and logically, consumer interest in the sector rose again.
So far 2022 has not been as dynamic as the bear market that prevails most of the year. Despite this negative trend, Chainalysis said global cryptocurrency adoption remains higher than it was before the 2020 bull market.
Many HODLers don’t see the downturn as a major challenge and have no plans to sell their property, the organization concludes
“Big, long-term cryptocurrency holders have continued to hold through the bear market, and so while their portfolios have lost value, those losses aren’t locked in yet because they haven’t sold— the on-chain data suggests those holders are optimistic the market will bounce back, which keeps market fundamentals relatively healthy.”