The blockchain intelligence firm Chainalysis’ new DeFi Adoption Index finds large economies lead in embracing decentralized finance, along with developing countries with strong crypto markets.
The U.S. leads the world when it comes to decentralized finance.
This does not only mean middle- to high-income countries. It also includes countries with well-developed cryptocurrency markets — particularly those with strong professional and institutional markets, the report noted.
While the U.S. is solidly on top, with a 1.0 rating, it is followed by Vietnam (0.82), Thailand (0.68) and China (0.62), only returning to developed nations at No. 5, the U.K. India is No. 6 and Ukraine No. 9.
That found that adoption of cryptocurrency has jumped by a staggering 80%, led by peer-to-peer DeFi exchanges that are “driving crypto usage in emerging markets.”
DeFi Grows Despite Safety Concerns
Chainalysis looked at three factors to come to those numbers.
Second is the total value received by DeFi platforms. Again, it was weighted to favor poorer countries.
Third is the number of individual deposits to DeFi platforms, focusing on where residents are actually buying, selling, loaning, and trading cryptocurrencies.
Among the findings is “that large transactions make up a much bigger share of DeFi activity, suggesting that DeFi is disproportionately popular for bigger investors compared to cryptocurrency as a whole.”
Chainalysis asked David Gogel, Growth Lead at the popular DeFi protocol dydx, about regional DeFi growth patterns.
“Right now, DeFi is targeted towards crypto insiders,” he said. “It’s people who have been in the industry for a while and have enough funds to experiment with new assets. In the long run as ETH gas prices fall, it’ll become accessible to more people.”