Global research firm Chainalysis developed the "Global Crypto Adoption Index" to measure how cryptocurrencies are being adopted around the world. In 2022, the index surveyed 146 global markets, ranking Taiwan 53rd. The top two spots were taken by Vietnam and the Philippines, while the United States ranked fifth and mainland China tenth.
Even though the global crypto market has experienced a bear market, the overall rate of adoption has slowed but remains higher than pre-bull market levels in 2019. Data shows that since mid-2019, the global adoption rate of cryptocurrencies has continued to grow, stabilizing in 2021.
The research team noted that, aside from the United States (5th) and the United Kingdom (17th), most of the top 20 countries in the rankings are emerging markets.
How the Global Crypto Adoption Index Is Calculated
The Global Crypto Adoption Index is composed of five sub-indexes. These include the value of cryptocurrency received on centralized exchanges, the volume of peer-to-peer (P2P) exchange trading, the retail value of cryptocurrency, and the value of cryptocurrency received from DeFi protocols. Each sub-index is adjusted for each country's purchasing power parity (PPP) and measured on a scale from 0 to 1. The closer a country's final score is to 1, the higher its ranking. Taiwan received an index score of 0.24, placing it at 53rd. Japan, for comparison, scored 0.339 and ranked 26th.
Key Trends in Global Cryptocurrency Adoption
Of the top 20 countries in the 2022 index, ten are classified as lower-middle-income economies. These include Vietnam (1st), the Philippines (2nd), Ukraine (3rd), India (4th), Pakistan (6th), Nigeria (11th), Morocco (14th), Nepal (16th), Kenya (19th), and Indonesia (20th). Vietnam ranked first in cryptocurrency adoption for the second consecutive year, with a perfect index score of 1. The Philippines, in second place, scored 0.753.
The research team highlighted that Vietnam shows extremely high adoption rates across centralized, DeFi, and P2P cryptocurrency tools when adjusted for purchasing power and population. This indicates a strong enthusiasm for crypto in the country, with 21% of Vietnamese consumers reporting they use or own cryptocurrency, second only to Nigeria at 32%.
Cryptocurrency-based gaming models, such as Play-to-Earn (P2E) and Move-to-Earn (M2E), are particularly popular in Vietnam. This trend has also attracted numerous crypto-gaming startups to establish and grow within the country.
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Frequently Asked Questions
What is the Global Crypto Adoption Index?
The Global Crypto Adoption Index is a comprehensive metric developed by Chainalysis. It measures cryptocurrency adoption levels across 146 countries by analyzing factors like on-chain value received, retail transactions, and P2P exchange volume, all weighted for purchasing power parity.
Why are emerging markets leading in crypto adoption?
Many emerging markets are experiencing high inflation or have less stable local currencies, leading citizens to seek alternative stores of value. Cryptocurrencies offer a accessible way to preserve wealth, facilitate remittances, and access the global digital economy.
How does Taiwan's crypto adoption compare to its neighbors?
Taiwan's ranking of 53rd places it behind regional leaders like Vietnam and the Philippines but reflects a steady and growing engagement with digital assets. Its score is influenced by retail trading activity and the developing local exchange ecosystem.
What does the future hold for global crypto adoption?
While adoption growth rates may fluctuate with market cycles, the underlying trend points toward increasing integration of cryptocurrencies into the global financial system, particularly in regions seeking financial innovation and inclusion.
What are Play-to-Earn (P2E) and Move-to-Earn (M2E) models?
These are blockchain-based business models where users are rewarded with cryptocurrency for participating in activities. P2E rewards players for playing games, while M2E incentivizes users for physical movement and exercise, often tracked via mobile apps.
Where can I learn more about managing digital assets?
For those interested in understanding and participating in the digital asset space, numerous educational resources and platforms are available. 👉 Get advanced methods for portfolio management to navigate this evolving landscape effectively.