India is now ranking second in the index of global cryptocurrency adoption. It is now ranking only behind Vietnam, according to the 2021 Global Crypto Adoption Index, by Chainalysis. The adoption of cryptos on a global scale has grown massively. It had grown up to 2300% after the third quarter of 2019, which is making it stay 881% over the last year.
This new research is suggesting that this increased adoption is getting backed up by a very different nature of adoption from all over the world. In the market, many have the potential to turn to crypto to preserve their savings in the face of transacting remittances, currency devaluation, and carrying out business transactions. On the other hand, the adoption in North America, eastern Asia, and Western Europe has been quite different, which has been powered by institutional investment.
Here is what the report said,
“Our research suggests that reasons for this increased adoption differ around the world — in emerging markets, many turn to cryptocurrency to preserve their savings in the face of currency devaluation, send and receive remittances, and carry out business transactions, while adoption in North America, Western Europe, and Eastern Asia over the last year has been powered largely by institutional investment.”
This ranking was based upon three metrics, which included P2P exchange trading volume and the received value. Pakistan and Ukraine are falling behind India as they are ranking third and fourth, respectively. On the other hand, the US’s rank has dropped from sixth to eighth, while China’s rank has dropped from fourth to thirteenth.
This report is attributing this drop in ranking as the falling of its P2P volumes in these two countries compared to the global volumes.
Most of the top 20 nations are developing ones, such as Tanzania, Kenya, Togo. Most of them are facing a significant currency devaluation. It is driving the residents to purchase cryptos from P2P platforms to preserve their savings. Others in this area are using cryptos to carry out all the international transactions for individual remittance or commercial uses like buying goods for selling and imports.