In the 2023 Geography of Cryptocurrency Report, Chainalysis revealed their 4th Global Crypto Adoption Index, reflecting crypto’s global acceptance and daily use. The Global Crypto Adoption Index 2023 identifies countries where a substantial portion of the population is investing a significant portion of their wealth in cryptocurrency.
The Index aims to assess the countries at the forefront of global crypto adoption 2023 by combining on-chain and real-world data. Rather than focusing on countries with the highest raw transaction volumes, typically the largest and wealthiest, the emphasis is on countries where ordinary people actively embrace cryptocurrency.
So, which are the top 10 crypto countries? We learn all about the nations leading cryptocurrency adoption around the world, but first, let’s focus on the methodology used by Chainalysis Global Crypto Adoption Index 2023:
Methodology of Global Crypto Adoption Index 2023
The Chainalysis Global Crypto Adoption Index 2023 is divided into five sub-indexes evaluating countries’ use of cryptocurrency services. For 154 countries, rankings are weighted by population size and purchasing power. Calculating the geometric mean across sub-indexes and normalizing the final score on a 0 to 1 scale for overall rankings is part of the process.
A higher rank is indicated by proximity to a score of 1. Sub-indices use web traffic patterns to calculate transaction volumes for various cryptocurrency services and protocols, with validation from local crypto experts worldwide.
The sub-indexes used in the calculation of the Chainalysis Global Crypto Adoption Index 2023 are as follows:
On-chain crypto value at centralized exchanges
This sub-index ranks crypto adoption by country based on crypto activity on centralized exchanges, and countries with more significant numbers based on the income of the average person in those nations are ranked at top. Therefore, the amount of on-chain cryptocurrency received is weighted by PPP (purchasing power parity) per capita. A higher ratio results in a higher ranking, favoring countries with lower average income.
On-chain retail value at centralized exchanges
Based on transactions under $10,000 USD, this metric tracks non-professional cryptocurrency users’ activity at centralized services. It ranks countries based on the amount received, with lower PPP per capita favoring those with lower average purchasing power.
P2P exchange trade volume
This sub-index ranks countries based on peer-to-peer trade volume, focusing on emerging markets. It is weighted to favor countries with lower PPP per capita and fewer internet users, highlighting countries where residents devote a significant portion of their finances to P2P crypto transactions.
On-chain crypto value from DeFi protocols
This sub-index focuses on DeFi (decentralized finance) activity, ranking countries according to transaction volume. Those with lower PPP per capita are again prioritized, emphasizing areas where DeFi protocols are used for a significant portion of financial transactions.
On-chain retail value from DeFi protocols
This sub-index ranks countries based on the volume of DeFi transactions in retail-sized transfers, emphasizing non-professional, individual users. Countries with lower PPP per capita benefit from the weighting.
Top 10 crypto countries according to the Global Crypto Adoption Index 2023
Now, the ranking of the top 10 crypto countries based on crypto adoption.
| Country | Region | Overall index ranking | Centralized service value received ranking | Retail centralized service value received ranking | P2P exchange trade volume ranking | DeFi value received ranking | Retail DeFi value received ranking |
| India | Central & Southern Asia and Oceania | 1 | 1 | 1 | 5 | 1 | 1 |
| Nigeria | Sub-Saharan Africa | 2 | 3 | 2 | 1 | 4 | 4 |
| Vietnam | Central & Southern Asia and Oceania | 3 | 4 | 4 | 2 | 3 | 3 |
| United States | North America | 4 | 2 | 8 | 12 | 2 | 2 |
| Ukraine | Eastern Europe | 5 | 5 | 3 | 11 | 10 | 10 |
| Philippines | Central & Southern Asia and Oceania | 6 | 6 | 6 | 19 | 7 | 7 |
| Indonesia | Central & Southern Asia and Oceania | 7 | 13 | 13 | 14 | 5 | 5 |
| Pakistan | Central & Southern Asia and Oceania | 8 | 7 | 7 | 9 | 20 | 20 |
| Brazil | Latin America | 9 | 9 | 11 | 15 | 11 | 11 |
| Thailand | Central & Southern Asia and Oceania | 10 | 8 | 15 | 44 | 6 | 6 |
What the Index implies
Among the 154 countries studied, India has the highest rate of crypto adoption 2023. Only three countries have a Chainalysis index score greater than 0.5, with Nigeria and Vietnam trailing India. The United States and Ukraine are ranked fourth and fifth, respectively. Nine of the top twenty are from Asia, three from Latin America, and two from Africa.
This emphasizes the role of crypto currency adoption as a financial equalizer, particularly in developing countries. Despite challenges such as bans and lack of knowledge about up and coming technologies, global crypto currency adoption effectively circumvents government restrictions, as evidenced by China and Russia ranking 11th and 13th, respectively, ahead of the UK, despite their bans. This proves that instead of banning completely, more effective crypto regulatory measures are brought by regulating respective crypto markets under various jurisdictions and ensuring user and developer safety.
Global crypto adoption index: The road ahead
The Chainalysis Global Crypto Adoption Index 2023 presents a clear picture of crypto adoption by country, and Asia in particular is running ahead in terms of crypto currency adoption among the top 10 crypto countries. In the coming times, crypto and web3 will have to be simplified for the newcomers so more and more people can join in the revolution without hesitation. Millionero plays an important role in this regard.
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