Ukraine Enters Top 5 Countries for Cryptocurrency Acceptance
India, Nigeria, and Vietnam have emerged as leaders among nations with a high level of cryptocurrency acceptance. Following closely behind in the top 5 are the United States and Ukraine, according to the findings of the "Global Cryptocurrency Adoption Index for 2023" by Chainalysis.
According to the research, the Global Cryptocurrency Adoption Index is based on five sub-indices that reflect the usage of various cryptocurrency services by countries.
"To calculate the sub-indices, we assess transaction volumes for different types of cryptocurrency services and protocols based on web traffic patterns to websites of these services and protocols. Given that our index considers hundreds of millions of transactions and 13 billion web visits, we are confident that any misattributed transaction volume due to VPNs is too small to compromise the data as a whole. We also validate our index with local cryptocurrency experts and operators around the world, giving us added confidence in this methodology," Chainalysis stated in the release.
Ukraine secured the fifth position in the overall ranking of cryptocurrency acceptance and also ranked fifth in the assessment of centralized cryptocurrency operations. Additionally, Ukraine claimed the third spot among countries for the level of decentralized retail operations. However, when it comes to assessing peer-to-peer exchange trading volumes, Ukraine was ranked 11th globally. Overall and retail DeFi adoption in Ukraine received dual 10th place rankings.
Central and South Asia, as well as Oceania, have demonstrated significant success in cryptocurrency adoption, with six out of the top ten leading countries in digital asset adoption located in these regions. This territory also holds the third position in terms of the volume of unprocessed transactions, accounting for approximately 20% of the global cryptocurrency activity, following only North and Central America and North and Western Europe.
It is worth noting that, according to Chainalysis, global cryptocurrency acceptance is still on the decline. Despite a noticeable recovery following a lull at the end of 2022, cryptocurrency acceptance levels are still far from their historical peaks.
Interestingly, countries with lower income levels have become an important segment for cryptocurrency adoption growth. Many of the index leaders fall into the Low-to-Middle-Income (LMI) category, and overall, countries with low income levels have demonstrated the most significant increase in cryptocurrency acceptance over the past year. This category of countries stands out with a higher overall cryptocurrency adoption rate compared to the third quarter of 2020, just before the recent "bullish" market rally.