Kenya is now ranked the leading adopter of cryptocurrency in Africa, based on an index developed by crypto research company, Chainalysis.
According to the upcoming 2021 Global Crypto Adoption Index, crypto adoption is skyrocketing with emerging markets taking the lead.
Here are the leading crypto markets in Africa according to the report:
- South Africa
The number 1 adopter of crypto according to the index is Vietnam followed by India.
The list of top 20 includes 17 from emerging market countries and just 3 from developed economies. This is a direct result of the methodology behind the index, which is designed to capture whether ordinary people are adopting crypto and minimize the impact of institutional and/or professional adoption.
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The three metrics behind the index are:
- On-chain cryptocurrency value received whih captures all total crypto activity
- On-chain retail value transferred which measures how much cryprocurrency individuals are transacting
- Peer to Peer trade volumes
Peer to peer trade volumes are retrieved from Paxful and Localbitcoins, the leading P2P marketplaces in the world, particularly in emerging markets.
Each metric is adjusted for purchasing power parity (PPP) which adds more weight to the absolute values of poorer countries.
The report also indicates that crypto adoption globally has shot up 2, 300% from Q2 2020 to Q2 2021.
While the report points to institutional investment as the main reason behind adoption in the West, this is different in emerging markets.
Some of the leading reasons behind adoption in emerging markets are:
- Many turn to cryptocurrency to preserve their savings in the face of currency devaluation
- Send and receive remittances.
- Carry out business transactions
The 2021 report has eliminated a fourth metric that contributed to each country’s overall ranking in 2020 – number of deposits by country weighted by number of internet users.
The full report will be released in September 2021.
RECOMMENDED READING: 2020 CHAINALYSIS REPORT: A Breakdown of The 2020 Geography of Cryptocurrency Report with a Focus on Africa
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