In their latest report, blockchain analysis firm, Chainalysis, has unveiled the 2023 Global Crypto Adoption Index, shedding light on the growth of grassroots cryptocurrency adoption worldwide.
What Happened: As per a blog post shared on Tuesday, Chainalysis launched the fourth edition of its Global Crypto Adoption Index. The index's main objective is to showcase the nations where ordinary citizens are majorly embracing cryptocurrencies.
The index utilizes a combination of on-chain and real-world data to pinpoint countries where a significant part of the population is investing a substantial portion of their wealth into cryptocurrencies.
The methodology comprises ranking all 154 countries based on five sub-indexes, including usage of various types of cryptocurrency services, population size, purchasing power, and the geometric mean of each country's ranking in all five, with the final number normalized on a scale of 0 to 1.
While Chainalysis acknowledges potential inaccuracies due to the imperfect nature of web traffic data, it remains confident in its methodology, given that it considers millions of transactions and 13 billion web visits.
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According to the index, the Central & Southern Asia and Oceania region leads the chart, accounting for six of the top ten countries. However, it also highlights a worldwide decline in grassroots crypto adoption, despite a recovery since late 2022.
The index brings to light a significant surge in crypto adoption in Lower Middle Income (LMI) countries, as classified by the World Bank. These nations have witnessed the most substantial recovery in crypto adoption over the last year. The data implies a significant role for cryptocurrencies in the future of LMI countries, which are home to 40% of the global population.
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