Blockchain analytics firms like Chainalysis developed the Global Crypto Index. A ranking system evaluates and compares countries based on how actively a nation’s population engages with cryptocurrencies. It is a comprehensive measurement of cryptocurrency adoption, usage, and activity, including decentralized finance (DeFi) protocols and peer-to-peer (P2P) exchange platforms such as Bitcoiva, the top crypto exchange in India.
| Country | Region | Overall Index Ranking | Centralized Service Value Received Ranking | Retail Centralized Service Value Received Ranking | DeFi Value Received Ranking | Retail DeFi Value Received Ranking |
| India | CSAO | 1 | 1 | 1 | 3 | 2 |
| Nigeria | Sub- Saharan Africa | 2 | 5 | 2 | 2 | 3 |
| Indonesia | CSAO | 3 | 6 | 6 | 1 | 1 |
| United States | North America | 4 | 2 | 12 | 4 | 4 |
| Vietnam | CSAO | 5 | 3 | 3 | 6 | 5 |
| Ukraine | Eastern Europe | 6 | 7 | 5 | 5 | 6 |
| Russia | Eastern Europe | 7 | 11 | 7 | 7 | 7 |
| Phillipines | CSAO | 8 | 9 | 8 | 14 | 9 |
| Pakistan | CSAO | 9 | 4 | 4 | 18 | 13 |
| Brazil | LATAM | 10 | 8 | 10 | 10 | 14 |
| Turkey | Middle East & North Africa | 11 | 14 | 11 | 15 | 11 |
| United Kingdom | Central, Northern & Western Europe | 12 | 12 | 21 | 9 | 8 |
| Venezuela | LATAM | 13 | 17 | 16 | 11 | 12 |
| Mexico | LATAM | 14 | 18 | 17 | 13 | 10 |
| Argentina | LATAM | 15 | 13 | 13 | 17 | 20 |
| Thailand | CSAO | 16 | 16 | 15 | 19 | 16 |
| Cambodia | CSAO | 17 | 10 | 9 | 35 | 23 |
| Canada | North America | 18 | 22 | 26 | 16 | 15 |
| South Korea | Eastern Asia | 19 | 15 | 14 | 33 | 33 |
| China | Eastern Asia | 20 | 20 | 18 | 24 | 22 |
The primary factors involved in crypto indexing are as follows;
On-Chain Transaction Volume
- Total Transaction Volume: This indicates the measurement of the total value of cryptocurrency transactions in a country or sector.
- Retail Transaction Volume: Focuses on smaller transactions (usually under $10,000), representing everyday use by individuals.
- Institutional Transaction Volume: Tracks large transactions (over $100,000), often institutional transactions and large-scale trading.
Peer-to-Peer (P2P) Exchange Activity
- P2P Exchange Volume: Measures the volume of cryptocurrency traded through P2P platforms.
- P2P Users: The number of people actively engaging in P2P trading, indicating the level of local adoption.
Decentralized Finance (DeFi) Adoption
- DeFi Protocol Activity: Tracks engagement with decentralized finance platforms, such as lending, borrowing, and staking.
- Smart Contract Interactions: The number of interactions with smart contracts on DeFi platforms reflects the usage of decentralized applications (dApps).
Institutional Involvement
- Institutional Investment: Assesses the participation of large-scale investors, such as hedge funds, banks, and corporations, in the crypto space.
- Institutional Custody and Trading: Tracks institutional-grade services, including custody solutions, investment vehicles (like Bitcoin ETFs), and over-the-counter (OTC) trading, are also included.
Exchange Activity
- Volume on Centralized Exchanges: Measures cryptocurrency trading volume on centralized exchanges like Bitcoiva.
- User Base on Exchanges: Tracks the number of active users on these exchanges within a country or region.
- Liquidity and Depth of Markets: Considers how liquid cryptocurrency markets are, influencing ease of trading and price stability.
Mining Activity
- Hash Rate Distribution: Tracks the percentage of global hash rate contributed by mining operations within a country.
- Mining Investment: Measures the level of investment in crypto mining infrastructure, including hardware, energy usage, and mining farms.
Regulatory Environment
- Government Regulations:
- Evaluate how favorable or restrictive a country’s regulations are toward cryptocurrencies. Clear frameworks for exchanges, taxation, anti-money laundering (AML), and know-your-customer (KYC) policies are also included.
- Regulatory Clarity: Assesses whether regulators have clear guidance on how crypto businesses and users should operate.
- Crypto Tax Policies: Determines how cryptocurrency is taxed in a country (capital gains, income tax, etc.), which affects adoption and institutional participation.
Financial Infrastructure and Accessibility
- Banking Integration: Measures how well-integrated cryptocurrencies are with the local banking and payment systems.
- Ease of Access to Crypto Services: It includes the infrastructure assessment of user-friendly crypto services, including wallets, mobile apps, and exchanges that support local currencies.
- Institutional Crypto Services: This section describes the availability of custody, trading, and settlement services tailored to large institutional clients.
Macroeconomic and Socioeconomic Factors
- Inflation and Currency Devaluation:
- In countries with high inflation or currency devaluation, cryptocurrency is often adopted as a hedge against local economic instability.
- Unbanked Population:
- Crypto adoption rates tend to be higher in regions with high numbers of unbanked individuals, as digital currencies offer an alternative to traditional banking.
- Cross-Border Payments: Cryptocurrency usage for remittances and cross-border transactions can be more efficient and less expensive than traditional methods.
Security and Illicit Activity
- Level of Blockchain Security: The security measures taken to protect the crypto ecosystem against scams, fraud, and hacking.
- Illicit Activity: This tracker tracks the percentage of crypto transactions linked to illegal activities like ransomware, money laundering, or black market transactions.
Public Sentiment and Awareness
- Adoption Sentiment:
It specifies the surveys of the public who utilize cryptocurrency for the purpose of investment, holding as asset, or used as transaction tool.
- Awareness and Education: How well-educated is the population on the use and risks of cryptocurrencies, which can affect adoption rates?
Tokenization and NFT Adoption
- Tokenization of Assets: This measure measures the adoption of tokenized real-world assets, such as stocks, real estate, or bonds, using blockchain.
- Non-Fungible Tokens (NFTs): It tracks the activity level in NFTs, particularly in gaming, art, and digital collectibles.
Innovation and Blockchain Development
- Number of Blockchain Startups: The number of startups or businesses working in blockchain technology, reflecting a country’s innovation in the sector.
- Development of Local Blockchain Infrastructure: Includes local exchanges, dApp developers, blockchain incubators, and other blockchain-based services.
Media and Industry Influence
- Media Coverage: The amount of positive or negative media coverage on cryptocurrencies can impact public perception and adoption.
- Industry Partnerships and Collaborations:
The collaboration and the partnership between the traditional financial institutions or industries that widely adopt cryptocurrencies.
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