The United States tops the list of the Global DeFi Adoption Index published by the blockchain data platform Chainalysis.
The top 10 countries on the list include Vietnam, Thailand, China, United Kingdom, India, the Netherlands, Canada, Ukraine, and Poland.
DeFi, short for “Decentralized Finance”, refers to decentralized cryptocurrency platforms that do not depend on central financial intermediaries.
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“DeFi platforms are protocols built on top of the smart contract-enriched blockchain – mainly the Ethereum network – and can perform certain financial functions determined by the underlying smart contract code,” Chainalysis explained in the report.
The DeFi space has seen unprecedented growth in the past 18 months. DeFi’s market cap is $ 125 billion with a trading volume of $ 18 billion in the last 24 hours, according to CoinMarketCap.
154 countries were part of the DeFi Adoption Index and were ranked according to three metrics:
Component 1: On-chain cryptocurrency value received from DeFi platforms, weighted by PPP per capita.
Component 2: Total retail value that DeFi platforms receive.
Component 3: Individual deposits on DeFi platforms.
Chainalysis’ Global DeFi Adoption Index ranks countries based on their DeFi adoption at the base. What stands out, according to the report, is that many of the countries that rank best in the grassroots launch of DeFi are the ones that have moved high levels of raw cryptocurrency value, both now and historically. These are usually middle to high income countries or countries with already developed cryptocurrency markets and especially strong professional and institutional markets.
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“Large institutional transactions, meaning those over $ 10 million in USD, accounted for over 60% of DeFi transactions in the second quarter of 2021, compared with less than 50% for all cryptocurrency transactions,” the data emphasized.
The Global DeFi Adoption Index highlights that DeFi adoption is driven by experienced cryptocurrency traders and investors looking for new alphase sources in innovative new platforms. It explains why greater DeFi adoption can be observed in high-income countries with established crypto user trunks.
It remains to be seen whether the DeFi rollout will follow the same pattern as previous cryptocurrency services, with wider adoption as users see their “tangible benefits beyond speculation and investment.”