We are excited to present the 2022 Global Cryptocurrency Adoption Index. For the third consecutive year, we have ranked countries based on grassroots cryptocurrency adoption rates. This article explores:
- What grassroots cryptocurrency adoption means
- The methodology behind the index
- The top 20 countries in the 2022 ranking
- Key findings and trends
What Is Grassroots Cryptocurrency Adoption?
While it's straightforward to rank countries by raw cryptocurrency transaction volume, our goal is different. We aim to identify where ordinary individuals invest a significant share of their financial resources into cryptocurrency. Although institutional activity matters, we focus on nations where non-professional investors are most active in crypto assets. Our methodology, detailed below, ensures we capture this grassroots engagement.
Our Methodology
The Global Cryptocurrency Adoption Index comprises five sub-indices, each based on country-level usage of various cryptocurrency services. We ranked 146 countries with sufficient data across these metrics, calculating the geometric mean of their rankings in all five sub-indices. Final scores were normalized to a 0–1 scale, with higher scores indicating greater adoption.
To compute the sub-indices, we estimated country-level transaction volumes for different services and protocols based on web traffic patterns. While VPN usage could theoretically skew data, the scale of our analysis—covering hundreds of millions of transactions—makes significant distortion unlikely. Experts we consulted confirmed that the index aligns with their market observations, reinforcing our confidence in this approach.
The five sub-indices are:
1. On-Chain Cryptocurrency Value Received by Centralized Exchanges, Weighted by Purchasing Power Parity (PPP) per Capita
This sub-index ranks countries based on total cryptocurrency activity on centralized services. We estimate the value received by users in each country and adjust for wealth using PPP per capita. A higher ratio of on-chain value to PPP results in a better ranking.
2. On-Chain Retail Value Received by Centralized Exchanges, Weighted by PPP per Capita
This metric measures activity by non-professional, individual users on centralized services. We focus on retail transactions (those under $10,000 USD) and weight the data to favor countries with lower PPP per capita.
3. Peer-to-Peer (P2P) Exchange Trade Volume, Weighted by PPP per Capita and Number of Internet Users
P2P trading is particularly significant in emerging markets. This sub-index ranks countries by P2P volume, adjusted for PPP and internet users, to highlight nations where residents allocate a larger share of their wealth to P2P transactions.
4. On-Chain Value Received from DeFi Protocols, Weighted by PPP per Capita
DeFi has been one of cryptocurrency’s fastest-growing sectors. This sub-index ranks countries by DeFi transaction volume, weighted to favor lower-PPP countries.
5. On-Chain Retail Value Received from DeFi Protocols, Weighted by PPP per Capita
Similar to the centralized service metric, this sub-index focuses on retail-scale DeFi transactions, again weighting for PPP per capita.
Key Changes in This Year’s Methodology
The most significant update to our methodology was the addition of two DeFi-based sub-indices and the modification of two others to focus solely on centralized service volume. This change ensures a balanced representation of both CeFi and DeFi activity, preventing artificial inflation of rankings for DeFi-heavy nations. By treating CeFi and DeFi metrics as equally important, we achieve a more accurate comparison of adoption across countries.
Top 20 Countries in the 2022 Global Cryptocurrency Adoption Index
- Vietnam
- Philippines
- Ukraine
- India
- United States
- Pakistan
- Brazil
- Thailand
- Russia
- China
- Nigeria
- Morocco
- Nepal
- Kenya
- Indonesia
- Turkey
- Argentina
- Colombia
- Ecuador
- United Kingdom
Key Findings from the 2022 Index
Global Adoption Slows in Bear Market but Remains Above Pre-Bull Levels
Data shows that after steady growth since mid-2019, global adoption rates plateaued last year. Adoption peaked in Q2 2021, followed by a dip in Q3, a rebound in Q4, and declines in the first two quarters of 2022 as the bear market set in. Despite this, adoption remains significantly higher than pre-bull market levels in 2019.
This suggests that many investors attracted during the 2020–2021 price surge have remained in the market, continuing to allocate substantial assets to cryptocurrencies. This resilience aligns with earlier research indicating that crypto markets have weathered recent downturns better than expected. Long-term holders appear optimistic, maintaining market health by not selling off depreciated assets.
Emerging Markets Dominate the Adoption Index
A trend observed last year has strengthened: emerging markets lead in cryptocurrency adoption. Using the World Bank’s income classifications, we find that middle-income countries dominate our top 20:
- 10 are lower-middle-income countries: Vietnam, Philippines, Ukraine, India, Pakistan, Nigeria, Morocco, Nepal, Kenya, and Indonesia
- 8 are upper-middle-income countries: Brazil, Thailand, Russia, China, Turkey, Argentina, Colombia, and Ecuador
- 2 are high-income countries: United States and United Kingdom
Users in middle-income nations often rely on cryptocurrencies for remittances, savings preservation during fiat currency volatility, and other financial needs specific to their economies. These countries also show a stronger preference for Bitcoin and stablecoins. The industry should focus on developing solutions to boost adoption in both high-income and low-income nations.
Vietnam Retains Top Spot, US Rises to Fifth, China Re-enters Top 10
Several country-specific trends stand out:
Vietnam secures the top position for the second consecutive year. The country shows exceptionally high adoption rates across centralized services, DeFi, and P2P trading, adjusted for purchasing power and population. Surveys indicate that cryptocurrency ownership is widespread, with play-to-earn and move-to-earn games gaining significant popularity. The success of Axie Infinity, developed in Ho Chi Minh City, has inspired further crypto gaming innovation in Vietnam.
The United States climbed to fifth place, up from eighth in 2021 and sixth in 2020. It ranks in the top three for every sub-index except P2P trading, where it places 111th—unsurprising, given that P2P usage tends to be highest in lower-PPP countries. The US is the highest-ranked developed market, alongside the UK.
China re-entered the top 10, ranking 13th in 2021. It shows particular strength in centralized service usage, ranking second in PPP-adjusted volume both overall and at the retail level. This is notable given the government’s September 2021 ban on cryptocurrency transactions, suggesting the禁令 may be ineffective or poorly enforced.
Bear Markets Haven’t Killed Bull Market Adoption
Despite the slowdown during the bear market, global adoption rates remain well above pre-2020 bull market levels. Data indicates that new users who entered during price surges tend to stay, supporting ecosystem growth across market cycles. This resilience is partly driven by the tangible benefits cryptocurrencies offer users in emerging markets, where economic instability makes crypto a valuable tool for financial management.
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Frequently Asked Questions
What is grassroots cryptocurrency adoption?
Grassroots adoption refers to cryptocurrency usage by non-professional, individual investors. It highlights countries where ordinary people allocate significant portions of their wealth to crypto assets, rather than focusing solely on institutional or high-volume trading.
Why do emerging markets dominate cryptocurrency adoption?
Users in emerging markets often turn to cryptocurrencies for remittances, as a store of value during local currency volatility, and to access financial services unavailable through traditional systems. These practical needs drive higher adoption rates compared to wealthier nations.
How is the adoption index calculated?
The index combines five sub-indices measuring on-chain value received by centralized exchanges, retail activity on centralized services, P2P trade volume, and DeFi protocol usage. Each metric is weighted by purchasing power parity per capita to adjust for economic differences.
Did China’s crypto ban affect its adoption ranking?
Despite the 2021 ban on cryptocurrency transactions, China re-entered the top 10 in 2022. Data suggests the禁令 may be loosely enforced, as activity on centralized services remains strong.
What role does DeFi play in adoption metrics?
DeFi protocols have become a major part of the cryptocurrency ecosystem. Our index now includes separate DeFi sub-indices to ensure balanced measurement between centralized and decentralized activity.
How has the bear market impacted adoption?
While adoption growth has slowed since mid-2021, global rates remain above pre-bull market levels. This indicates that many investors who entered during price peaks continue to hold and use cryptocurrencies.