Crypto adoption rates indicate how widely accepted cryptocurrencies are around the world and although mainstream cryptos often only mention Bitcoin and Ethereum, there are tens of thousands of crypto projects each with different use cases.
Besides common usage, some consumers see digital coins as a form of investment. They hold their crypto long or short in order to make a profit.
Unlike stocks and bonds, governments have no control over cryptos; therefore, individuals and institutions can freely use and trade cryptos. The fact that many platforms offer exchange services has led to the adoption of cryptocurrencies. Additionally, companies such as Tesla, PayPal, and Mastercard have boosted the adoption of cryptocurrencies. Their crypto-tolerant approach seems to resonate with the masses.
Crypto Adoption Information
Global crypto adoption grew by more than 880% in 2021, according to research conducted by Chainalysis. The change is even more significant compared to data from 2019, where there is a 2300% increase.
The primary search metrics for this data centered on overall crypto activity, peer-to-peer (P2P) trading volume, and non-professional trader volume.
You might expect countries like the US and UK to be leaders in cryptocurrency adoption. However, data from Statista and Chainalysis show otherwise. Countries in Asia, Africa, and Latin America are leading in adoption, especially when it comes to individual investors. The dataset correlates with information from exchanges and on-chain providers – more accounts have been opened during this period, as well as many crypto wallets.
P2P platforms drive adoption
Countries in emerging economies showed much more activity, especially on a P2P basis. In contrast, institutional traders have primarily driven adoption in developed economies.
Like the dollar, most cryptos operate globally, making it easier to purchase goods and services globally. Most consumers also see cryptocurrencies as a way to improve financial inclusion for underbanked and underserved populations.
In Europe, the UK and Switzerland top the charts, although large hedge funds are facilitating adoption.
The English-speaking countries, the United States, the United Kingdom, and Australia, are leading the adoption of crypto.
The United States is by far the leader in North America, while China and Russia still hold significant shares of the crypto market. However, institutional and professional traders lead the purchase and use of cryptos in these countries. Crypto exchanges are popular ways to acquire crypto in the United States and Russia.
Numbers in China were affected by the crypto ban imposed in the last quarter of 2021. The country slipped to 13th position. Activity in P2P marketplaces and exchanges has dropped significantly, putting the country north of the 100th position in P2P commerce.
Emerging and developing economies
Vietnam, India and Pakistan are leading the way, according to data from Chainalysis. People in these economies have a different view of holding crypto, especially Bitcoin. Many see it as an instrument for savings, money transfer and business transactions. In the Philippines, some crypto exchanges have licenses to operate as money transfer companies.
However, Eastern European consumers see crypto as a way to avoid financial institutions and tax evasion.
Crypto acquisition is powered by P2P marketplaces such as Paxful and LocalBitcoins. These platforms are the main on-ramp to crypto, especially Bitcoin. Adoption is made easy enough with the integration of local payment methods.
Data from Statista seems to match these results. However, in this case, Nigeria, Thailand, and the Philippines are firmly leading the way in crypto adoption.
Nigeria, South Africa, and Kenya are leading the pack in crypto adoption in Africa. Argentina and Brazil are the leaders in Latin America.
Although other cryptos like Cardano, Bitcoin Cash, Monero and Dogecoin are popular, Bitcoin is clearly the leader in adoption and market capitalization statistics.
About 23.3 million Americans own Bitcoin, although we consider Bitcoin to be a nascent technology product. Worldwide, 106 million people have used or owned Bitcoin.
Ethereum comes second with over 14 million owners and 10 million users. In addition to being a means of payment, the Ethereum blockchain supports many applications in its ecosystem.
Adoption vs regulation
Regulators in many countries have not been able to keep up with developments in cryptocurrencies. The lack of clear regulations hinders the adoption of cryptocurrencies. Some quarterbacks view cryptocurrencies as extremely volatile with only sentimental support.
China and Egypt are among the notable countries that have instituted regulations against the use and trade of cryptocurrencies.
Experts believe that clear regulations are likely to encourage the adoption of cryptocurrencies. New and innovative derivative products are likely to appear.
Cryptos for everyday use or as assets?
According to Statista’s survey, European consumers are likely to use their digital coins as a form of investment. The largest Europe-based crypto hedge funds provide ample evidence of this data.
Although on a smaller scale, developing countries such as Nigeria, where consumers only buy fractional crypto stocks, seem to prefer crypto over investing. Other countries like Vietnam have banned the use of crypto as a means of payment, leaving it only as an investment.
Consumers can easily pay for goods and services with their crypto in the US because there are more merchants accepting crypto.
Top 10 Countries by Crypto Adoption
The Statista survey interviewed between 2,000 and 24,000 people in 56 countries. Here are the top 10 countries in the ranking leading to crypto adoption.