The 2022 International Crypto Adoption Index has launched its third report indicating the place the market could also be heading in 2023.

Key highlights from the report:

“DeFi-driven cryptocurrency markets in North America have been robust however unstable during the last yr.”

• • Key findings: North America ranks 2nd in cryptocurrency exercise, receiving $1.15 trillion price of crypto within the interval of July 2021 to June 2022, accounting for 19% of the world’s crypto exercise. DeFi has been a significant contributor to North America’s crypto surge, making up 37% of the area’s crypto transactions, surpassing Western Europe’s 31% DeFi share. Different areas, equivalent to Sub-Saharan Africa, have a lot decrease DeFi exercise at 13%.

“Latin America’s key crypto adoption drivers: storing worth, sending remittances, and in search of alpha.”

• • Key findings: Latin America ranks seventh within the yr’s cryptocurrency markets, with $562B in crypto obtained by residents from July 2021 to June 2022, marking a 40% enhance from final yr.
  • The mixed inflation charge of the highest 5 Latin American economies (Brazil, Chile, Colombia, Mexico, Peru) hit a 25-year excessive of 12.1% in August 2022, in accordance with the Worldwide Financial Fund. Bitcoin wasn’t round when inflation final reached such heights, however stablecoins, that are designed to be pegged to fiat currencies like USD, are more and more widespread in essentially the most inflation-hit international locations within the area. Surveys present that over a 3rd of Latin American customers already use stablecoins for on a regular basis purchases.

“Central, Northern & Western Europe stays the world’s largest crypto financial system because of DeFi, NFTs, and rising regulatory readability.”

• • Key findings: CNWE is the biggest crypto financial system globally, with $1.3 trillion price of crypto obtained by customers and establishments within the area from July 2021 to June 2022. Western Europe has 6 of the highest 40 crypto adopters. DeFi was a significant contributor, fuelled by EU rules just like the crypto journey rule and MiCA licensing regime. The UK is the largest DeFi hub in Europe, rating 1st in CNWE and sixth globally, with $233 billion in crypto obtained from July 2021 to June 2022.

“Jap Europe’s crypto market lively, with spikes in final yr pushed by Russia-Ukraine Conflict.”

• • Key findings: Jap Europe is the fifth largest crypto market, receiving $630.9 billion in crypto between July 2021 and June 2022, accounting for 10% of world crypto exercise. In March 2022, in the course of the struggle, Ukrainian hryvnia-denominated commerce quantity elevated 121% to $307 million, and Russian ruble-denominated commerce quantity rose 35% to $805 million. Nonetheless, after March, commerce volumes dropped for each international locations, fluctuating till August however by no means reaching their March peak.

“Crypto adoption steadies in South Asia, soars within the Southeast.”

• • Key findings: CSAO is the third largest crypto market, with $932B price of crypto obtained by residents of CSAO international locations from July 2021 to June 2022. Play-to-earn video games and NFTs are intently linked. Most blockchain video games at the moment have NFTs as in-game gadgets, which will be bought on numerous NFT marketplaces. For international locations with excessive NFT market internet site visitors, like Thailand, Vietnam, and the Philippines, a major a part of that site visitors could come from blockchain recreation gamers in video games like Axie Infinity.

“Cryptocurrency market development in Jap Asia grinds to a halt, Chinese language market down however not out following authorities bans.”

• • Key findings: In Jap Asia, the cryptocurrency market is the fourth largest in our evaluation, with $777.5 billion price of cryptocurrency transactions from July 2021 to June 2022, accounting for practically 13% of world transactions in that point. The area has declined from its third place rating within the earlier Geography of Cryptocurrency Report, with solely 4% development in transaction quantity YoY, the bottom amongst areas analyzed. Regardless of being the biggest crypto market within the space, China noticed a 31% lower in cryptocurrency transactions YoY, whereas Japan noticed a greater than 100% enhance.

“Center East & North Africa’s crypto markets develop greater than some other area in 2022.”

• • Key Findings: The Center East & North Africa (MENA) area could have a smaller presence within the 2022 International Crypto Adoption Index, but it surely’s the fastest-growing crypto market. From July 2021 to June 2022, MENA customers obtained $566 billion in cryptocurrency, a 48% enhance from the earlier yr. In Turkey and Egypt, the instability of fiat currencies has made cryptocurrency a beautiful choice for preserving financial savings. The Turkish Lira has skilled 80.5% inflation, whereas the Egyptian Pound has weakened by 13.5% within the final yr. Moreover, the remittance market in Egypt, which accounts for 8% of its GDP, is important. The nation’s central financial institution has began a undertaking to create a cryptocurrency-based remittance hall between Egypt and the UAE, the place many Egyptians work.

“Cryptocurrency meets residents’ financial wants in Sub-Saharan Africa.”

• • Key Findings: Sub-Saharan Africa has the bottom cryptocurrency transaction quantity amongst areas analyzed, with $100.6 billion in on-chain quantity obtained from July 2021 to June 2022, accounting for two% of world exercise and a 16% enhance from the earlier yr.
  • Small Retail Transactions Drive Crypto in Sub-Saharan Africa The retail market and excessive utilization of P2P platforms in Sub-Saharan Africa set it aside from different areas. Retail transfers under $10,000 USD make up 6.4% of its transaction quantity, the very best of any area. The significance of retail turns into clearer when inspecting the variety of particular person transfers. Retail transfers make up 95% of all transfers, and 80% of these are small retail transfers beneath $1,000, additionally the very best of any area.

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