Thomas Molander. | October 5 2022
Thomas Molander. | October 5 2022
Even during market downturns and the "crypto winter", the spread of adoption in emerging markets is an inspiring sign, no matter the particular crypto asset, whether it be Bitcoin or other alternative coins. Countries including Vietnam, the Philippines, Ukraine, Turkey, and more have been leading the charge towards global digital asset adoption throughout the crypto news.
The increasing adoption of cryptocurrencies in emerging markets abroad is a major reason to feel excited for the prospects of the digital landscape. In 2021, the blockchain and data analysis firm, Chainalysis, reported increases in global digital asset adoption of nearly 900%. Even during bear markets, users have found utility and convenience in obtaining and trading cryptocurrencies across varying degrees of market capitalization and coin prices.
Cryptocurrency adoption has been particularly strong in countries classified as “lower middle income.” In these countries, notice how Bitcoin and cryptocurrencies can be particularly useful for people looking for affordable borderless transfers, and for preserving savings, albeit at their own risk, in times of volatility and credit in their countries’ fiat currencies. Advertisers target new demographics in the market through advice and data within the industry's arising news, and from key professional figures giving notable advice.
As global adoption continues, it is becoming increasingly important to have tools and platforms that can unite the dizzying array of digital currency and exchanges while providing the best price in one platform. The cryptocurrencies listed on Orion represent another avenue for availability and adoption along with the transition from regular "money" to digital. Each country’s economy and the companies within it have specific financial needs and data that require unique tools.
The digital asset landscape requires points of connection to bring the market together. Advancing beyond the traditional stock market, stock quotes and more, comes the emerging digital asset movement and emerging blockchain networks, providing finance in its new, modern and "other form" of value. Orion is the gateway to the broadest selection of digital assets and tools in the market, ushering in to determine a new era for global adoption and growth no matter where in the world you are located.
An estimated 4% of the world’s population uses cryptocurrency in some capacity—a figure that represents more than three hundred million holders. These are impressive and relevant numbers, but they also indicate room for explosive future growth. As global markets go through differing phases of adoption, how do we measure the registration of growth rates? Our research revealed two general approaches.
The grassroots approach
A grassroots approach to measure cryptocurrency adoption evaluates the share of investors’ money being put into cryptocurrencies. Taken a step further, this ranking method can also be refined to account for the relative buying power of any given country’s native currency. This is known as accounting for the purchasing power parity of a region, which helps give a more complete picture of adoption metrics.
The transaction volume approach
Gross transactional volume, measured alone, places India, the United States, Russia, Nigeria, and Brazil as the top crypto countries. Ranking countries in this way favors countries with advanced institutional adoption, capable of moving far larger traded sums of crypto than the retail industry could. Focusing on countries with high degrees of institutional adoption may not paint a full picture regarding the expected extent to which the general public uses crypto in their daily lives—an important benchmark for adoption.
As more everyday individuals are drawn to cryptocurrency, the need for user-friendly tools that unite the crypto market is needed. Orion is cognizant of the need to enter the entire crypto market effectively. Orion Protocol actively aggregates liquidity from as many decentralized and centralized crypto exchanges as possible, providing a gateway to all cryptocurrencies, and building a bridge between crypto and traditional finance.
Tracking the relationship between crypto adoption and current events can be an enlightening way to measure how crypto can mitigate financial pain points abroad. This is without reflecting upon temporary cryptocurrency prices and circulating supply, sometimes needed for some individuals to arrive at a sense of worth.
For instance, Ukraine commonly appears near the top of lists of countries with the highest instances of crypto ownership. Ukraine’s high adoption rates may be indicative of challenges associated with the country’s conflict with Russia, including rising inflation, the need for borderless transactions, and perceived instability with the nation’s currency and value.
The number one country when it comes to grassroots cryptocurrency adoption is Vietnam. Vietnam serves as a good example to exhibit factors that drive and advertise crypto adoption and the ability to work hard for the global adoption of the digital asset movement.
One factor that contributes to widespread cryptocurrency adoption in Vietnam is the high tax on remittance payments sent to residents from outside the country. To those who wish to support family members, high fees are charged on monetary transfers sent home using traditional centralized channels similar to PayPal and Western Union. This can (and has) lead Vietnamese residents to search for better options. Cryptocurrencies and "Bitcoins" can fit the bill perfectly, as they can offer near-instantaneous and near-free transactional, provided that holders and investors have the motivation and the resources to adapt and manage the new tech. Bitcoin and blockchain of course paved the way for these newly emerging markets.
Another factor commonly associated with the widespread adoption in Vietnam is a general sense of distrust in the country’s national currency, which has had a history of devaluation. Vietnamese residents are known for holding their savings in assets to improve the relative price as they typically offer more stability than cash, historically having used gold for savings and even for facilitating transactions. The visibility and increasing analysis-led view of the total market cap of digital currencies gives people another option. Economic instability may have primed the link to Vietnamese people for crypto adoption.
One effective way to stay on top of how innovation and legislation is spurring cryptocurrency adoption is by following Web3 News by Orion, started in late September of this year, either on Twitter (app or browser) or on Telegram. These resources offer well-rounded news by aggregating global developments impacting Web3 and the market cap-related general information of a current project and their native token around the world.
The other top countries when it comes to grassroots crypto adoption are, in order: the Philippines, Ukraine, India, the United States, Pakistan, Brazil, Thailand, Russia, China, Nigeria, and Turkey. In Turkey—as is the case in many countries where the shockwaves of the COVID pandemic continue to be felt—increased crypto adoption has been linked to high rates of inflation in the country.
In 2022, Turkey saw its highest inflationary rates in more than two decades, as an increasing price of energy costs and a weakening national currency continue to disrupt the country’s economy. Bitcoin's transactional volume in Turkey has seen strong growth during the same period, indicating that the general public, companies, and newer investors may becoming more aware of this and pivoting towards cryptocurrencies to protect themselves against the Turkish Lira. In Turkey and Vietnam—and many other countries that have seen strong cryptocurrency adoption recently— digital coin payments are not embraced by federal regulatory bodies or an exchange commission. Regardless, citizens have continued to invest in Bitcoin and other blockchain-based assets, even with no guarantee of total stability.
Crypto was largely created (by Satoshi Nakomoto) to empower people financially, providing an affordable and secure method to store and transfer assets without interference from financial institutions, governments, and other regulatory bodies. In countries that suffer acutely from problems associated with centralized banking systems—including excessive regulations, expensive cross-border transactional payments, untenable rising costs, and unstable national currencies—the push towards widespread adoption is necessary for improved living standards and improved services.
A significant barrier impeding further adoption in and across emerging markets is the fragmentation of the cryptocurrency space. There’s a seemingly endless number of coins and tokens and a dizzying array of centralized and decentralized exchanges pushed within the news. This issue is exacerbated as one crosses regional jurisdictions. This also strictly poses a security threat due to maintaining ownership over numerous wallets, both custodial and not. Even for the most diligent and secure-minded user, this can make token acquisitions feel inaccessible and risky.
For people interested in having complete control over their digital portfolio, it is important to have non-custodial ownership of cryptocurrencies. Orion’s seamless, non-custodial wallet integration keeps the user in control of their own private keys, providing both ease of use and top-notch protection while removing any centralized fraud flaws.
Orion Protocol has its sights set on providing solutions to Bitcoin and altcoin enthusiasts worldwide with regard to price efficiency and accessibility. People have access to the best cryptocurrency prices and enable the future use of more than a dozen additional revenue streams associated with digital currency ownership, including staking. Traders using Orion receive user-friendly availability to endless trade liquidity and maintain non-custodial ownership over their favorite coin or digital assets.
With fiat onboarding already integrated, adding credit to swap from currencies such as the US Dollar and Euro to Bitcoin and altcoins remains smooth and simple. Orion unites the best existing cryptocurrency projects and varying price differences from exchanges in one seamless location, either from the main Orion site, or via any site thanks to Orion Swap Widget. It provides top aggregation of prices and performance, drawing the cryptocurrency market cap into cohesion and paving the way for an optimized blockchain landscape across the world.