The average middle-class population in India, Nigeria and Thailand is driving grassroots adoption of cryptocurrencies through exposure to digital assets. Cryptocurrency research firm Chainaanalysis shared this sentiment in the fourth installment of its Global Cryptocurrency Adoption Index report. India topped the index among 154 countries, indicating that crypto culture is finding a place in Indians’ daily financial and investment activities. Nigeria, Vietnam, the United States and Ukraine follow India in second, third and fourth place respectively.
superior chain analysis indexIndia ranks first in cryptocurrency trading volume in both retail and non-retail DeFi trading. In terms of peer-to-peer exchange trading volume, India ranks fifth and Nigeria ranks first.
“Last year, low- and middle-income (LMI) countries saw the largest recovery in grassroots cryptocurrency adoption. In fact, LMIs are the only group of countries where total grassroots adoption is still higher than in the third quarter of 2020.” Chainaanalysis said in its findings.
To put things in perspective, countries with per capita gross national income (GNI) between US$1,086 (approximately Rs. 90,057) and US$4,255 (approximately Rs. 3.5 lakh) are classified as lower-middle-income countries. India, Ukraine and Nigeria are low- and middle-income countries.
Low- and middle-income countries are growing in industrialization and population and account for more than 40% of the world’s population. Data from Chainaanalysis suggests that as these low- and middle-income countries progress, cryptocurrency adoption may become an important part of the future of global fintech.
“Grassroots cryptocurrency adoption has nothing to do with which countries have the highest raw transaction volume – anyone could have guessed that the largest, richest countries are far ahead. Instead, we want to highlight the countries where the general population is most enthusiastic about cryptocurrencies. If the mid-low Revenue countries are the future, and the data suggests cryptocurrencies will be a big part of that future,” the report added.
After the collapse of FTX cryptocurrency exchange last year, investor trust in the cryptocurrency industry plummeted. This has become a major factor in the slowdown in the adoption of cryptocurrencies in daily payments in several high-income countries.
The report shows optimism about the future of the digital asset industry.
It states: “Even during the ongoing crypto winter, institutional adoption (driven primarily by organizations in high-income countries) continues to gain momentum, painting a promising picture of the future.”
Meanwhile, cryptocurrency adoption is becoming a regular financial activity in countries such as Indonesia, Pakistan, Brazil, China, Turkey, Russia, the United Kingdom, Argentina, Mexico, Bangladesh, Japan, Canada, and Morocco, according to a report by Chainaanalysis.
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