Introduction
The grassroots crypto adoption is calculated using the on-chain and real-world data to evaluate the country’s crypto adoption. Rather than focusing on countries with the highest raw transaction volumes, which are typically the most prominent and wealthiest nations, it aims to spotlight the countries where everyday individuals are wholeheartedly embracing cryptocurrencies. In this blog, we can delve into the key insights of the Global Crypto Adoption Index in 2023 with the top 20 countries.
The Global Crypto Adoption Index is calculated based on the division of five sub-indexes. Each sub-index uses different types of cryptocurrency exchange services in each country. The analysis ranks all 154 countries for sufficient data on each sub-index and weights the rankings by characteristics like population size and purchasing power if the country scores higher ranks, which means the final score of 1.
The sub-indices can be calculated by estimating transaction volumes for different types of cryptocurrency based on the services and protocols on those Crypto trading platforms.
The sub-indices can be displayed below based on how they will be calculated and valued for grassroots crypto adoption.
The sub-indices within the Global Crypto Adoption Index are designed to provide a comprehensive assessment of crypto adoption with a focus on different aspects.
| Country | Overall Index Ranking | Centralized Service value received ranking | Retail Centralized service value received ranking | P2P exchange Trade Volume Ranking | DeFi value received Ranking |
|---|---|---|---|---|---|
| India | 1 | 1 | 1 | 5 | 1 |
| Nigeria | 2 | 3 | 2 | 1 | 4 |
| Vietnam | 3 | 4 | 4 | 2 | 3 |
| United States | 4 | 2 | 8 | 12 | 2 |
| Ukraine | 5 | 5 | 3 | 11 | 10 |
| Philippines | 6 | 6 | 6 | 19 | 7 |
| Indonesis | 7 | 13 | 13 | 14 | 5 |
| Pakistan | 8 | 7 | 7 | 9 | 20 |
| Brazil | 9 | 9 | 11 | 15 | 11 |
| Thailand | 10 | 8 | 15 | 44 | 6 |
| China | 11 | 10 | 5 | 13 | 23 |
| Turkey | 12 | 11 | 9 | 35 | 12 |
| Russia | 13 | 12 | 10 | 36 | 9 |
| United Kingdom | 14 | 15 | 20 | 38 | 8 |
| Argetina | 15 | 14 | 12 | 29 | 19 |
| Mexico | 16 | 17 | 18 | 30 | 16 |
| Bangladesh | 17 | 18 | 19 | 33 | 22 |
| Japan | 18 | 22 | 21 | 49 | 18 |
| Canada | 19 | 25 | 23 | 62 | 14 |
| Morocco | 20 | 27 | 25 | 21 | 26 |
Here’s a summary of each sub-index, its calculation method, and the underlying rationale:
Overall index ranking
This sub-index ranks countries based on the total cryptocurrency activity on centralized crypto exchanges. It is achieved by estimating the on-chain cryptocurrency received by users of centralized services in each country and weighting it according to PPP per capita. Countries with a higher ratio of on-chain value received to PPP per capita are ranked higher.
Centralized service value received ranking
This metric focuses on measuring the involvement of individual cryptocurrency users at centralized services, particularly non-professionals, by assessing their transactions in retail-sized amounts (under $10,000 worth of cryptocurrency). The rankings are influenced by the country’s PPP per capita, favoring those with lower PPP per capita figures.
P2P exchange trade volume ranking
P2P exchange activity plays a significant role in emerging cryptocurrency markets. This sub-index ranks countries based on their P2P trade volume and gives preference to countries with lower PPP per capita and fewer internet users. The objective is to emphasize countries where a more significant proportion of the population engages in P2P cryptocurrency transactions.
DeFi value received ranking
DeFi (decentralized finance) is a leading-edge sector within the cryptocurrency ecosystem. This sub-index highlights countries where users actively participate in DeFi transactions by ranking them based on DeFi transaction volume. The rankings are weighted to favor countries with lower PPP per capita, reflecting a higher share of financial activity conducted through DeFi protocols.
Retail centralized service value received ranking
This sub-index is tailored to highlight the DeFi activity of individual cryptocurrency users, similar to the focus on centralized services. It ranks countries based on their DeFi transaction volume in retail-sized transfers and is weighted to prioritize countries with lower PPP per capita figures.
These sub-indices provide a multifaceted view of crypto adoption, accounting for various aspects of cryptocurrency usage and adjusting rankings to consider the wealth and activity of everyday users in each country.
Conclusion
In the 2023 Global Crypto Adoption Index, India has secured the top position in grassroots crypto adoption despite facing a challenging regulatory landscape. India achieved the first rank in four key parameters, encompassing centralized service value received, retail centralized service value received, DeFi value received, and retail DeFi value received. It marks a significant improvement from the previous year when India held the fourth position in the report.
India has imposed a 30% tax on crypto gains and introduced a 1% Tax Deducted at Source (TDS) on crypto transactions, resulting in declining trade volumes. Despite these challenges, India has also been actively advocating for the development of global crypto regulations, as evidenced by its recent participation in discussions at the G20 Summit hosted by the country.
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