Ukraine has defeated Russia and China as the top-ranking country in cryptocurrency adoption. According to the Global Crypto Adoption Index 2020 published by blockchain data analytics company Chainalysis, Ukraine, Russia, Venezuela China, Kenya, and the United States are the top-performing nations in adoption metrics.
As per reports, Chainalysis measured the cryptocurrency adoption of 154 countries using three on-chain metrics: on-chain value transferred, the total value of on-chain crypto transactions – both weighted by purchasing power parity per capita (PPP), and the number of on-chain cryptocurrency deposits – weighted by the number of internet users in each country. The volume of trades made on peer-to-peer crypto exchanges was also taken as a factor by the index, weighted by both PPP and the number of internet users.
According to Chainalysis firm, this methodology of collecting the data is one of its kind attempts to comprehensively understand the country-wise cryptocurrency activity on a global scale. The report also stated that developing countries are leading the way for retail crypto adoption at the global level.
Ukraine ranked first in the list, followed by Russia, Venezuela, China, Kenya, the United States, South Africa, Nigeria, Colombia, and Vietnam. Countries with the least amount of crypto activities include Afghanistan, Algeria, Fiji, Laos, Libya, Mongolia, Tajikistan, Turkmenistan, West Bank and Gaza, and Zimbabwe.
Ukraine has reportedly become a popular destination for cryptocurrency adoption, governed by crypto-curious administration and tech-savvy citizens. The government has been working in cooperation with the local blockchain community to develop future regulations for the cryptocurrency market.
Responding to the development, Ukraine’s Ministry of Digital Transformation released a statement, asserting that the market of virtual assets in the country is potentially developed and has a significant turnover even on a global scale.
“There are several reasons for the popularity of crypto among Ukrainians: a big blockchain developer community and tech-savvy population in general, cumbersome regulations for export and import transactions and the absence of the stock market in the country. All of this is encouraging people to try out digital assets,” the Ministry added in a blog post.
Notedly, the pattern of cryptocurrency usage differs from country to country. While Russia and Ukraine have been using their crypto capabilities for cross-border and business-to-business transactions, people in Venezuela have been using the digital assets to boost savings and peer-to-peer trading.
Explaining the report, Kim Grauer, head of research at Chainalysis, stated that both Russia and Ukraine have an industrious startup environment which has led to a surge in crypto usage in these countries.
China and the US, where cryptocurrency whales are paramount drivers of growth, continue to deliver the largest transaction volumes of digital currency. Chainalysis report also shows that there has been an uneven development across the sectors of cryptocurrency in many countries, noting that Vietnam is ranking in second place for the value of both retail and all on-chain transactions. At the same time, there are no western European countries in Chainalysis’s ranking of the top ten countries in terms of crypto adoption.
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