Emerging markets dominated this year’s Global Crypto Adoption Index, with Vietnam taking the top spot for the second year.
According to the most recent annual index by crypto analytics firm Chainalysis, countries in the World Bank’s two middle four income level and economic development categories were over-represented.
Some 10 of the top 20 ranked countries are considered lower-middle income, including the Philippines, Ukraine, India, Pakistan, Nigeria, Morocco, Nepal, Kenya, Indonesia and Vietnam, which took the top spot from last year.
Users in these countries often rely on cryptocurrencies for more practical purposes given the uncertain nature of their financial situation.
Citizens of these countries often use cryptocurrencies to send remittances, often in the form of stable coins, or “preserve their savings in times of fiat currency volatility, and meet other financial needs for their economies.” ”
vietnam number one again
For the second year in a row, Vietnam ranks first in the index of cryptocurrency adoption. The country scored highest in several sub-rankings used as criteria, including “extremely high purchasing power and adoption in population-adjusted centralized, DeFi and P2P cryptocurrency tools.”
In addition to favorable economic conditions, the Vietnamese have also demonstrated a propensity for cryptocurrencies. Some 21% of Vietnamese consumers reported using or owning a cryptocurrency, second only to Nigeria at 32%, although adoption has only grown since then.
Local media reports highlight the popularity of cryptocurrency-based games following the Move to Play (P2E) and Move to Earn (M2E) models, not only for players, but also for developers.
The highest-grossing P2E game Axie Infinity is based in Ho Chi Minh City, whose success has inspired further crypto gaming development in Vietnam.
dug in spite of the recession
The report acknowledged that the crypto markets have taken a significant decline after a relatively steady rise since 2019, but this time many of the investors remained the same.
The data shows that long-term holders of the cryptocurrency have persisted during the current depreciation, so while the portfolio has lost value, the loss has not yet stopped. According to the report, this means that holders are optimistic that the market will bounce back.
The report states that by keeping market fundamentals relatively healthy, this allows the ecosystem to grow consistently across market cycles. The report highlights the role of cryptocurrency users in emerging markets.
These people continue to believe in crypto, “in large part because cryptocurrency offers unique, tangible benefits to people living in volatile economic conditions.”