Blockchain analysis company Chainalysis has revealed the 2020 Global Crypto Adoption Index with Ukraine scooping the first position followed by Russia. Moreover, Kenya is taking the lead place amongst African countries.
Out of 154 countries, the top 10 Chainalysis index list includes Ukraine, Russia, Venezuela, and China. Secondly, African countries such as Kenya, South Africa, and Nigeria also made it to the list. Completing the list are the USA, Colombia, and Vietnam.
As per the Chainalysis report, Russia with a score of 0.931 and China with 0.672 have beaten the USA which scored only 0.627. On the other hand, Kenya managed to surpass Nigeria on the list. Prior to this, Nigeria ranked first among countries with the highest number of citizens to have used or owned cryptocurrencies in 2020.
In its 2020 Global Crypto Adoption Index, Chainalysis noted that:
While trading and speculation are important to the cryptocurrency economy, the index’s emphasis is on grassroots adoption by everyday users.
The Global Crypto Adoption Index is made up of four metrics. These include the on-chain cryptocurrency value received, weighted by purchasing power parity (PPP) per capita. Secondly is on-chain retail value transferred, weighted by PPP per capita.
Also considered is the number of on-chain cryptocurrency deposits, weighted by the number of internet users. Lastly is the peer-to-peer (P2P) exchange trade volume, weighted by PPP per capita and number of internet users.
Venezuela and Kenya rank in the top-two performing nations by P2P exchange volume. Meanwhile, China dominates in the on-chain rankings by both retail and total value.
In addition, some countries scored zero in the overall index of the four metrics used for the calculations. These countries are likely to have some cryptocurrency activities that are significantly lower than the other countries. Afghanistan, Algeria, Cape Verde, Fiji, Laos, and Libya are among the lowest-ranked countries in the list.
Developing countries were noted to have high grassroots cryptocurrency activity. Meanwhile, Venezuela is a developing country that eventually increased its cryptocurrency usage once the country’s native fiat currency started losing value due to inflation.