Cryptocurrency adoption – Latest crypto adoption report indicates that Nigeria has taken back its lead in crypto adoption across the continent, hence positioning as #11 in the world, with a relative adoption score of 0.521.
Kenya was the leader last year, however, comes third in Africa with an adoption score of 0.39, and #19 position globally.
Both Nigeria and Kenya have improved significantly in their cryptocurrency adoption score, where Nigeria is seen to have gained 100.39% from a 0.26 index score in 2021, and Kenya gained 41.79%, from an index score of 0.28 in 2021.
Despite both countries gaining a significant increase in scores, their rankings have dropped out of the top 10 rankings compared to last year, when Kenya and Nigeria ranked 5th and 6th respectively.
Chainanalysis cryptocurrency adoption report ranks countries with recourse to five major indexes which include;
- On-chain cryptocurrency value received at centralized exchanges
- Weighted by purchasing power parity per capita
- On-chain retail value received at centralized exchanges
- Weighted by PPP per capital,
- Peer-to-peer (P2P) exchange trade volume, weighted by PPP per capita and several internet users, On-chain cryptocurrency value received from Defi protocols.
Points to note about cryptocurrency adoption & ranking
- On the ranking techniques, the report concludes that “To calculate our sub-indexes, we estimate countries’ cryptocurrency transaction volumes for different services and protocols websites. Relying on website traffic data means that the use of VPNs and other products that mask online activity but given that our index takes into account hundreds of millions of transactions, VPN usage would need to be extremely widespread to meaningfully skew our data.”
- The report as well as mentioned that its report did not rank the countries in question based on raw cryptocurrency transaction volume, which would give a straightforward view of where the most cryptocurrency activity is happening. It also mentions, “While institutional activity is important to that, we also want to highlight the countries where individual, non-professional investors are embracing digital assets the most.”
Nigeria/Africa
- Looking deeper into the compositions that make up the overall rankings and index score, Nigeria ranks #18 in centralized service value received ranking, #18 in retail centralized service value received ranking, #17 in P2P exchange trade volume ranking, and #20 in Defi value received the ranking. Data on On-chain retail value received from Defi protocols were not available.
- Kenya ranks #43 in centralized service value received ranking, #43 in retail centralized service value received, #5 in P2P exchange trade volume ranking, and #9 in Defi value received the ranking. Data on the on-chain retail value received from Defi protocols were not available.
- A shocking entry into the list is Morocco, which did not rank among the top 20 in 2021. The country now ranks the second largest in Africa when you talk of cryptocurrency adoption in Africa and ranks #14. Diving deeper, the country ranks #19 in centralized service value received ranking, #19 in retail centralized service value received ranking, #21 in P2P exchange trade volume ranking, and #33 in Defi value received the ranking. Data on the on-chain retail value received from Defi protocols were not available.
