19 June 2024

Grassroots Crypto Adoption Being Led by Lower Middle-Income Nations Like India, Nigeria and Ukraine – Report

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The global economy has endured many challenges during the past few years, following the Covid-19 outbreak. We’ve all witnessed unprecedented levels of inflation as well as a lot of economic uncertainty.

It’s also no secret that the crypto and blockchain space has been impacted by these issues, along with the spectacular collapse of large platforms like FTX, Three Arrows Capital, Celsius and many others.

However, a comprehensive crypto adoption report indicates that consumers across the globe are using decentralized digital currencies to complete financial transactions. This trend is more evident in lower middle-income nations.

According to the World Bank, high-income countries include the United States, United Kingdom and Saudi Arabia, among others. Upper middle-income nations include Argentina, China and Russia, among several others.

Lower middle-income countries include India, Nigeria, Ukraine and others. Low-income nations include Ethiopia, Sudan and Yemen, among many others.

Although there’s been a significant recovery following the collapse of major crypto platforms in late 2022, which is around the time FTX practically imploded, grassroots crypto adoption remains well off its all-time highs, according to an extensive report from blockchain analysis firm Chainalysis.

But there’s one key segment of nations where grassroots cryptocurrency adoption has seen a considerably stronger recovery than anywhere in the world, Chainalysis revealed.

According to the report from the blockchain firm, LMI (lower middle-income) countries have seen fairly steady crypto adoption.

Chainalysis’ report claims that this trend might be promising for crypto’s future potential.

As explained in the research report, LMI nations are usually countries on the rise, with fast-evolving, rapidly expanding industries and populations.

Many of these nations have undergone considerable economic development during the past few decades in order to rise from the low-income group, the Chainalysis report noted.

The report further revealed that 40% of the global population lives in LMI nations, which is significantly greater than any other income category.

The report also mentioned that if LMI nations are the future, then the data from Chainalysis suggests that crypto is going to be a major part of that future.

That, along with the fact that institutional adoption mainly led by organizations in high-income nations continues to gain traction even during the extended crypto bear market, paints a promising picture of the future of this nascent industry.

Chainalysis believes that we might see a combination of bottom-up and top-down crypto adoption in the foreseeable future, depending on market conditions and socioeconomic factors.


Omar Faridi enjoys writing about all topics related to Bitcoin, blockchain and cryptocurrency. He is most interested in crypto regulations, quantum resistant blockchains and Ethereum and Bitcoin core development. He works as an application developer for the University of Houston and a data storage specialist for Dell EMC.

 

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