Ukraine took first place as the Global Crypto Adoption Index 2020 followed by
Russia,
Venezuela,
China,
Kenya,
USA,
South Africa,
Nigeria,
Colombia,
Vietnam. These are the top 10 countries, these are made by Chainalysis, knowing that cryptocurrency adoption is growing around the world.
To make this happen, the researcher weighted the index formula to measure cryptocurrency activity and the country's population and economy size. The researchers want to show to all of you those countries with the residents that move the biggest share of their financial into cryptocurrency. The methods that the researchers have done are explained below.
This Global Crypto Adoption Index is made up of four metrics
1.
On-chain value received (weighted by purchasing power parity (PPP) per capita).
We calculate the metric by estimating total cryptocurrency received by that country, and weighting the on-chain value based on PPP per capita, which is a measure of the country’s wealth per resident. The higher the ratio of on-chain value received to PPP per capita, the higher the ranking, meaning that if two countries had equal cryptocurrency value received, the country with the lower PPP per capita would rank ahead.
2. On-chain retail value received (weighted by PPP per capita).
The goal of this metric is to measure the activity of non-professional, individual cryptocurrency users, based on how much cryptocurrency they’re transacting compared to the wealth of the average person. We approximate individuals’ cryptocurrency activity by measuring the amount of cryptocurrency moved in retail transactions, which we designate as any transaction for under $10,000 USD worth of cryptocurrency. We then rank each country according to this metric but weight it to favor countries with a lower PPP per capita.
3. Number of on-chain deposits(weighted by number of internet users).
The goal of this metric is to rank countries based on whose residents are carrying out the highest number of cryptocurrency transactions. We measure this by taking the ratio of on-chain cryptocurrency deposits to the country’s total number of internet users. The higher the ratio, the higher the ranking, meaning that if two countries had an equal number of deposits, the country with fewer internet users would rank higher.
4. Peer to peer (P2P) exchange trade value(weighted by PPP per capita and number of internet users).
Unlike our other three metrics, P2P trade volume isn’t expressed on blockchains, but still makes up a significant percentage of all cryptocurrency activity, especially in the developing world. We rank countries by their P2P trade volume and weight it to favor countries with lower PPP per capita and fewer internet users, the goal being to highlight countries where more residents are putting a larger share of their overall wealth into P2P cryptocurrency transactions.
Source:
https://blog.chainalysis.com/reports/2020-global-cryptocurrency-adoption-index-2020
