Cryptocurrency adoption has surged 880% worldwide over the past year, with Vietnam, India, Pakistan and other emerging economies leading this list, according to Chainalysis.

Chainalysis compares the 2021 global cryptocurrency adoption index in several countries in a new report, titled geography of cryptocurrency.

In its report, Chainalysis relied on cryptocurrency adoption rates around the world, based on three main metrics:

Cryptocurrency value at receiving parties, on-chain retail value, and crypto trading volume between June 2020 and June 2021.

According to the “Chinalysis” report, Vietnam topped the field by far, achieving an overall index of 1.

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India came in at 0.37, Pakistan 0.36, Ukraine 0.29 and Kenya 0.28.

These results are different from the results of last year.

Ukraine topped the list with a score of 1 last year.

Vietnam ranked 10th away from last year, with a score of 0.443.

While Kenya ranked fifth in last year’s index with a score of 0.645, India and Pakistan were among the newcomers to the top ten.

Emerging economies are driving the adoption of cryptocurrencies:

The researchers at Chainalysis noted that while cryptocurrency adoption has surged worldwide over the past year, it has been particularly evident in emerging economies.

This can be largely explained by the large transaction volumes on local peer-to-peer platforms when the purchasing power parity of the individual and the total number of Internet users are taken into account.

The researchers at Chainalysis noted the following:

Our interviews with experts in these countries revealed that many residents use P2P cryptocurrency exchanges as their primary gateway to the cryptocurrency world, mostly because they do not have access to centralized exchanges.

Not surprisingly, regions with many emerging markets account for a large portion of web traffic to P2P crypto websites.

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The report pointed out that many emerging economies subject their local currencies to a lot of inflation, which prompted people to search for alternative ways to store their money.

Additionally, it is easier to transact with digital currencies internationally, which is especially important because local governments may limit the amount of national currency that can be sent abroad.

Meanwhile, economic powers such as the United States and China have fallen to lower positions in the index compared to 2020.

Specifically, the United States is currently ranked eighth (it was sixth in 2020) while China is ranked thirteenth (it was fourth).

The researchers noted that the biggest reason for both countries’ declines in the index is that their rankings in P2P trading volume weighted for the population using the Internet have fallen dramatically.

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China fell from 53rd in this ranking to 155th, while the United States fell from 16th to 109th.

In the case of China, this is not surprising, especially given the country’s crackdown on bitcoin over the past few months.

However, the global rate of cryptocurrency adoption and geographic spread since last year has shown that cryptocurrency is a truly global phenomenon, which is what the Chainalysis report concluded.

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