As the cryptocurrency industry expands, digital assets are used for many reasons, including payments and investments. However, the usage of cryptocurrencies for such purposes varies substantially per nation due to regulatory concerns.
According to new data, the United States ranks first worldwide for total cryptocurrency usage, scoring 7.75 out of 10. The United Kingdom comes second with a score of 5.79, followed by Ukraine with a score of 5.96, according to data from Merchant Machine on August 22.
Specifically, the score included the number of crypto owners in a nation, the decentralised finance (Defi) adoption index, the number of companies that accept crypto payments, the number of Bitcoin (BTC) ATMs, and the monthly search traffic for cryptocurrency-related phrases.
The study’s objective was to determine which nations invest the most in cryptocurrencies by analysing various variables from 50 countries.
Top ten countries leading in crypto usage. Source: Merchant Machine
US and UK economies are driven by their size.
The US and the UK rank first due to the size of their economies and a mature crypto economy. However, the analysis indicated that Ukraine, the poorest country in Europe based on GDP and GNI per capita, scores well owing to emerging countries’ overall crypto adoption tendencies.
In addition, among the top ten crypto-using nations, Ukraine ranks first in the proportion of its population that owns digital assets, at 12.73%.
Such nations experience economic difficulties defined by devaluations of the native currency, compelling inhabitants to invest in cryptocurrencies as a store of value.
The research predicts that Nigeria will have the most prominent total usage of cryptocurrencies over the next three years, which partially supports this point. If crypto usage in Nigeria continues to expand at the current rate, the whole population will be utilising digital assets, according to the researchers.
Another study found that despite the market drop in 2022, Nigeria remained among the nations with the most crypto interest.
Impact of the market meltdown on crypto adoption
Although the market crash has placed doubt on the long-term viability of cryptocurrencies, a portion of the sector believes a future rise is likely. For example, Bloomberg Intelligence commodity strategist Mike McGlone predicted that the market would rise in the year’s second half.
It is important to note that the regulatory component will impact the acceptance of cryptocurrencies in various nations. Most governments have expedited their attempts to establish related laws in response to the market meltdown.