One article to understand the global cryptocurrency market in the past year


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A new cryptocurrency adoption index released by blockchain intelligence company Chainalysis shows that global crypto activity continues to flourish. Researchers compiled on-chain digital currency retail value transfer, on-chain encrypted deposits, peer-to-peer (P2P) transaction volume, and other types of methods.

Chainalysis recently released a new report, “2020 Geography of Crypto (2020 Geography of Crypto)”, which investigated the booming development of cryptocurrencies in 154 countries and these regions. The company created the Global Crypto Adoption Index. Compared with other countries, only 12 countries have very little cryptocurrency activity.

The countries with the lowest rankings on the index include Afghanistan, Algeria, Cape Verde, Chad, Fiji, Laos, Libya and Mongolia.

The report combines four separate indicators to arrive at the top ten countries in the global encryption adoption index. In terms of on-chain collections, on-chain retail collections, on-chain deposits, and P2P exchange transactions, Ukraine ranks first overall.

It is followed closely by Russia, Venezuela, China, Kenya, the United States, South Africa, Nigeria, Colombia and Vietnam. The report pointed out that cryptocurrency is indeed global. The report also pointed out that grassroot cryptocurrency activities in developing countries are very active.

Chainalysis added, “Venezuela is a good example of what is driving the adoption of cryptocurrencies in developing countries and how citizens use (cryptocurrencies) to ease economic instability-when Venezuela’s fiat currency depreciates due to inflation At that time, Venezuelans will use cryptocurrency more.”

The study emphasized that wealth preservation strategies are also being used in Africa and East Asia. In addition, Chainalysis emphasized that P2P cryptocurrency exchanges are essential for developing countries to adopt digital currencies.

In the part of the report involving Africa, Chainalysis stated that remittances and currency devaluation are the reasons that promote the adoption of cryptocurrencies throughout Africa. The study noted that major cryptocurrency trading platforms now see Africa as an “opportunity.”

The blockchain policy Chainalysis details that in African regions, such as Kenya, Nigeria and South Africa, the adoption rate has been higher than other regions on the entire African continent.

Chainalysis’s research also covers Central Asia, South Asia, and Oceania (CSAO), and researchers call its growth “already strong.”

In the CSAO region, many countries have adopted many cryptocurrency regulations. In terms of cryptocurrency activities, CSAO is the fifth most active region in the world. In the past 12 months (July 2019 to June 2020), the region has conducted a total of US$41 billion in remittances and US$40 billion in receipts. paragraph.

In terms of crypto activities, East Asia is the world’s largest crypto market, accounting for 31% of all digital currency transactions in the past 12 months. Encrypted addresses from East Asia received US$107 billion in cryptocurrency, 77% more than the second largest receiving region in Northern Europe and Western Europe (NWE). The Chainalysis report emphasizes that East Asia is dominated by “Pro Traders” and “Stablecoins.” Compared with other parts of the world, the use of stablecoins in East Asia has “exploded.”

Eastern Europe has the world’s fourth-largest crypto activity rating, and the region also includes the top two countries in the Chainalysis crypto adoption index: Ukraine and Russia. Chainalysis pointed out that “the grassroots cryptocurrency adoption rate in Eastern Europe is very high.”

As far as cryptocurrency activities are concerned, one reason why Russia and Ukraine have performed outstandingly is that the adoption is carried out “under regulatory uncertainty.” For example, Chainalysis stated that Ukraine has no encryption regulations, but the government has just begun to monitor encryption activities.

In terms of on-chain activities, Latin America is relatively small, and the adoption rate of cryptocurrencies is low compared to the aforementioned regions. In one year, Latin America sent 25 billion U.S. dollars in crypto assets and received 24 billion U.S. dollars in crypto assets.

Chainalysis emphasizes that in any 30-day time frame, Latin America accounts for 5% to 9% of the total crypto activity in any given month. Although Chainalysis says the region is one of the “hottest markets” for financial technology, it is also the region with the second lowest growth rate among the regions studied by Chainalysis.

Chainalysis said that the Middle East is a smaller digital currency ecosystem and the second smallest region in the world. According to research, Turkey is the country with the most encryption activities in the Middle East. Among the 154 countries studied by Chainalysis, Turkey’s encryption adoption index ranked 29th.

Chainalysis mentioned that Turkey is a strong crypto adopter due to the depreciation of the Turkish lira. The fiat currency crisis was triggered by the dictatorship of its President Recep Tayyip Erdoğan and Turkey’s mountain of private foreign currency debt.

At the end of the report, Chainalysis mentioned North America (the United States and Canada), which attracted “conservative buy and hold” investors as well as institutional investors. In 12 months, both remittances and receipts in North America were US$52 billion.

“Calculated by the amount of transfers on the cryptocurrency chain, North America is the third most active region, after Northern Europe and Western Europe (NWE), and far behind East Asia.” Addresses from North America accounted for 14 of all crypto activities during the Chainalysis study. %.

Chainalysis further explained that more and more institutional investors in North America are also carrying out larger-scale cryptocurrency transfers.

In addition, Chainalysis emphasized that encryption alliances have been formed in some global regions. “North America and Northern Europe and Western Europe (NWE) form a quasi-common market, plus a large number of transactions with East Asia.”

NWE has a strong professional market, but the number of illegal activities is also staggering. In terms of encryption activities, NWE is the second largest region after East Asia. The NWE region accounts for 17% of all crypto transactions worldwide.

In terms of institutions and professional traders, NWE exhibits similar characteristics to North America. However, NWE’s encryption activities are also “largely driven by ransomware and the dark web market.”

This 130-page study shows that in certain regions, the adoption and activity of cryptocurrencies has grown exponentially. Many officials in other countries and regions have just begun to realize cryptocurrency technology, and in contrast they are at a disadvantage.

Today in 2020, East Asia is the king of global encryption activities, followed by NWE. The report concludes with a complete ranking table of its crypto index, showing relevant data from 154 countries studied by Chainalysis in the past year.

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