Crypto appears to be a desirable asset in lower-middle-income countries.
Chainalysis, the blockchain analytics firm, has released its 2023 Global Crypto Adoption Index, revealing a shift in the global landscape of cryptocurrency adoption. The report identifies India, Nigeria, and Thailand as the nations showing the most enthusiasm for crypto, particularly among the lower-middle-income (LMI) countries.
According to Chainalysis, six of the top 10 countries most actively involved in crypto adoption are located in central and south Asia, as well as Oceania.
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This regional engagement comes in the face of a global decrease in crypto adoption, impacted by market events like the 2022 FTX collapse. Yet, countries classified as lower-middle-income by the World Bank have shown remarkable resilience, registering a significant uptick in crypto engagement compared to last year.
In fact, LMI is the only category of countries whose total grassroots adoption remains above where it was in Q3 2020, just prior to the most recent bull market.
Chainalysis points out that these lower-middle-income nations account for over 40% of the world's population and have growing industries.
While grassroots adoption has shown resilience in lower-middle-income countries, institutional involvement in cryptocurrencies is steadily increasing in high-income nations. The report hints at a possible dual approach to adoption, fulfilling the needs of developing and developed countries in the near future.
India, in particular, emerges as a unique case. Not only does it lead in grassroots adoption according to the Chainalysis index, but it also ranks as the second-largest cryptocurrency market by estimated transaction volume, trailing only the United States. Moreover, the country has been actively working on launching a well-defined legislative framework for cryptocurrencies.
The Chainalysis 2023 Global Crypto Adoption Index findings suggest that while global crypto adoption may be experiencing a downturn, some countries, particularly those classified as lower-middle-income, are bucking the trend. These countries, led by India, Nigeria, and Thailand, appear to be shaping a future where cryptocurrencies could play a significant role, backed by grassroots and institutional adoption.
