Accelerated Cryptocurrency Adoption in Asia and Emerging Markets

Cryptocurrency adoption is growing at a faster pace in Asia compared to other regions globally. Unlike previous years, this growth is now spread across all income levels, not just concentrated among the lower-income segments. This shift is highlighted in Chainalysis' latest annual report, which examines the progression of cryptocurrency adoption worldwide.

According to the 2024 Global Cryptocurrency Adoption Index from Chainalysis, Central and Southern Asia, along with Oceania, are emerging as the leading regions for cryptocurrency use. The demographic and socioeconomic landscape of crypto adoption has evolved significantly. The official entry of cryptocurrencies into mainstream finance, exemplified by the listing of the first Bitcoin spot ETFs on Wall Street, has broadened the profile of crypto buyers. While lower-income individuals from inflation-hit regions have traditionally been the primary users of crypto, wealthier segments are now increasingly adopting it.

Widespread Growth in Cryptocurrency Adoption

Chainalysis' fifth annual cryptocurrency adoption index reveals that the number of people embracing cryptocurrencies globally is on the rise. This comprehensive study analyzed data from 151 countries, accounting for different population densities and purchasing power. The report meticulously tracked transaction volumes across various cryptocurrency services, incorporating over 13 billion web visits to evaluate global crypto traffic. The data was further refined by considering per capita GDP to reflect more accurate adoption rates by geographic region.

Key metrics assessed in the study included:

• The type of services provided by centralized entities.
• The activity of non-professional users.
• The level of activity on decentralized finance (DeFi) platforms.
• The value of cryptocurrencies transferred by retail users through DeFi protocols.

One notable shift in the cryptocurrency landscape is the sharp decline in peer-to-peer (P2P) trading activity. For the first time in five years, P2P exchanges were excluded from the analysis. Once a cornerstone of the early crypto ecosystem, P2P trading has seen a dramatic drop in engagement, coinciding with the closure of LocalBitcoins.com, a prominent P2P platform.

Asia and Oceania Lead Global Cryptocurrency Activity

Asia, particularly Central and Southern Asia, and Oceania now dominate the global crypto adoption rankings. Seven of the top 20 countries in the index come from these regions. In these areas, high levels of trading activity are evident, particularly on local exchanges, fueled by services designed for crypto-based commerce and payments.

On a global scale, cryptocurrency activity surged between the end of 2023 and early 2024, rebounding after a period of stagnation. The resurgence has pushed activity levels beyond those seen during the bull market of 2021. Unlike in 2023, when middle- and low-income countries led the adoption surge, crypto activity in 2024 has risen across all income levels.

However, an interesting trend emerged at the beginning of 2024: cryptocurrency adoption slowed in high-income countries. This development was somewhat surprising given the introduction of Bitcoin spot ETFs in the United States, which was expected to drive greater interest in these markets.

Bitcoin ETFs Propel Global Cryptocurrency Growth

The launch of Bitcoin spot ETFs in the U.S. has had a profound impact on the global Bitcoin ecosystem, driving significant increases in Bitcoin-related activity across all regions. The most substantial annual growth was observed in large-scale transactions, particularly in high-income areas like North America and Western Europe. Institutional investment played a key role in this, as more large players began entering the crypto space following the ETF's introduction.

At the same time, there has been an increase in the use of stablecoins for retail transactions. Stablecoins have become increasingly popular for day-to-day transactions, particularly in low- and middle-income countries, such as regions in Sub-Saharan Africa and Latin America. This trend highlights the growing use of cryptocurrencies not just as speculative investments but as practical tools for daily financial activities in regions with unstable currencies or high inflation.

Diverging Use Cases Between Wealthy and Low-Income Regions

As cryptocurrency adoption expands, the gap between how crypto is used in different parts of the world is widening. In wealthier regions, crypto is increasingly seen as a large-scale investment tool, particularly in institutional contexts. In contrast, in lower-income countries or regions struggling with high inflation and currency devaluation, cryptocurrencies are becoming a more integral part of everyday life, used for basic transactions and as a hedge against local currency volatility.

This contrast underscores the multifaceted nature of cryptocurrency adoption: while institutional and large-scale investors in affluent countries drive the broader market, in economically challenged regions, crypto is emerging as a lifeline for financial stability, providing alternatives to failing traditional systems.