A new study by blockchain analytics firm Chainalysis shows that despite China’s ban on Bitcoin, in other countries in Central and South Asia and Oceania, the adoption of crypto has grown as transactions have risen by 706%.
Asian countries take the lead in terms of overall adoption
Institutional and large payments accounted for the highest percentage of transactions, which is another indication of institutional adoption. This trend was most pronounced in India, where large institutional-sized transfers above $10 million accounted for 42% of transactions. Between July 2020 and June 2021, the value of transactions amounted to $572.5 billion, or 14% of the global transaction value. While Europe dominates the current crypto market, Asian countries take the lead in terms of overall adoption as measured by on-chain value received on-chain retail transactions and peer-to-peer transaction volume.
The use of DeFi has also grown significantly in Central and South Asia and Oceania. Uniswap, Instadapp, and dydx primarily drive this activity, but Compound, Curve, AAVE, and 1inch are also very active. The Indian DeFi market appears to be the largest. Krishna Sriram, Managing Director at Quantstamp, stated. “Tons of Indian developers, fund analysts, and independent freelancers working for overseas employers have started requesting to be paid in cryptocurrency”. He also noted that most people he speaks to want to be paid in Ethereum or USDC and receive payments through centralized exchanges or decentralized exchanges.
Despite the recent crackdown on Bitcoin in China the rest of Asia is embracing crypto
While China is trying to stop its use in their country, chain Analysis research shows a lot of differences between Central and Southern Asia’s most important markets. These countries are at different stages of cryptocurrency market development.
Many are initially looking to cryptocurrencies in search of quick returns from speculative trading with various investments that investors can make through centralized services and traditional P2P platforms, which seems to be the predominant use case in Vietnam and Pakistan. However, in markets like India, where the cryptocurrency community has grown and attracted outside investment, there is more development and use of innovative projects like DeFi protocols.