- Cryptocurrency adoption is being led by smaller nations rather than global giants, according to Chainalysis
- Ukraine leads the way in actual use of digital assets, followed by Russia and Venezuela
- Ukraine may be a surprise leader, but they have a very pro-technology approach
Cryptocurrency adoption is being led by developing countries, with Ukraine being the biggest adopter of the new technology, according to a new report by Chainalysis. In a study that took a number of metrics into consideration in order to reflect actual usage of digital assets, the likes of China and the U.S. fare worse than Ukraine, Russia, and Venezuela in terms of genuine cryptocurrency adoption, although they do have many more large holders of cryptocurrency.
Small Nations Lead the Way
Chainalysis’ report looked at a number of metrics to discern levels of adoption, including on-chain cryptocurrency value received by countries, number of on-chain cryptocurrency deposits, on-chain value transferred, and peer-to-peer exchange trade volume. This data was weighted by the purchasing power parity per capita and number of internet users within each country to give a final rating.
The report found that while the U.S. and China are delivering the largest transaction volumes, residents of Ukraine, Russia, and Venezuela are the most active retail users of cryptocurrencies. China and the U.S. follow suit, alongside Kenya.
Chainalysis’ metrics gives a clearer idea of actual cryptocurrency adoption in terms of regular use, which is why Ukraine and other smaller countries feature so highly on the list.
Is Ukraine a Blockchain Hub?
Ukraine may be seen as a surprise leader in the cryptocurrency adoption race, but the country has a notably tech-friendly population and a burgeoning startup environment. It would be tempting to call them a blockchain hub, but that would likely condemn it to the same fate as other purported hubs, most of which have failed to live up to their billing.