- Breaking down the Index
- Top 20 countries for crypto adoption in 2024
- Major changes in Chainalysis methodology
According to Chainalysis’ Global Crypto Adoption Index, Nigeria, India, and Indonesia are the top three countries in crypto adoption for 2024. This index evaluates how countries use crypto services based on a combination of factors like transaction volumes, retail usage, and DeFi adoption.
Breaking down the Index
The Global Crypto Adoption Index includes four sub-indexes. The first one ranks countries by the total crypto value received by centralized services, adjusting the ranking based on per capita GDP. This helps measure how significant crypto adoption is for regular people in each country. For instance, India is ranked first in this category, receiving the highest total value relative to its per capita GDP. Nigeria, ranked second overall globally, came in fifth in this category.
Top 20 countries for crypto adoption in 2024
After India, Nigeria, and Indonesia, the United States comes in fourth place, boosted by large institutional transactions and the introduction of the Bitcoin ETF. Vietnam, which previously ranked first in 2023, now sits in fifth place. Ukraine, Russia, and the Philippines round out the top ten. Brazil and Turkey also feature in the top 10, representing Latin America and the Middle East with their rapid crypto adoption. Countries like the United Kingdom (12th), Venezuela (13th), Mexico (14th), and Argentina (15th) show that crypto adoption is widespread in regions facing economic challenges. For example, Argentina has seen a surge in crypto transactions as people turn to stablecoins to hedge against inflation. Meanwhile, South Korea and China, although major players in the global crypto scene, rank 19th and 20th, respectively.
Major changes in Chainalysis methodology
Chainalysis has made some important changes to its methodology this year. One major change is how they calculate transaction volume. Previously, intermediary steps between wallets could inflate the numbers; now, Chainalysis only counts the first transaction, providing a more accurate picture of DeFi activity. This adjustment led to lower estimates for some countries but offers more precise data on who is actually using DeFi services. Another significant change is the removal of the P2P exchange sub-index. For years, P2P exchanges were a key part of measuring crypto adoption, but with the decline in P2P trading activity and the shutdown of platforms, Chainalysis has decided to exclude this category for 2024.
All in all, crypto activity surged globally between late 2023 and early 2024, even surpassing the levels seen during the 2021 bull market. DeFi usage has exploded in Sub-Saharan Africa, Latin America, and Eastern Europe, contributing to a surge in altcoin activity. Chainalysis expects this trend to continue as more people in these regions gain access to decentralized financial services.
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