Developing countries are driving retail crypto adoption, and Ukraine is leading the way, according to a new report by blockchain analytics firm Chainalysis.
Ukraine, Russia and Venezuela are the top three countries for cryptocurrency adoption, Chainalysis said in its Global Cryptocurrency Adoption Index, published Tuesday as a part of the firm’s upcoming report on global trends in crypto usage.
The U.S. and China are still delivering the largest transaction volumes, but putting aside the largest “whale” crypto holders, Ukrainians, Russians and Venezuelans are the most active retail users of digital currencies, according to Chainalysis’ ranking. They are followed by China, Kenya and the U.S.
Chainalysis measured crypto adoption using on-chain cryptocurrency value received by a country, on-chain value transferred, number of on-chain cryptocurrency deposits and peer-to-peer exchange trade volume. The data was weighted by the purchasing power parity per capita and number of internet users in each country.
The list of “winners” might look surprising, but only at first glance, said Kim Grauer, head of research at Chainalysis. For example, Russia has a history of using e-payment services, Grauer explained. People are used to digital payments, so the transition to cryptocurrencies might be a bit more seamless.