The latest report from Chainalysis, a Blockchain data platform helping helps government agencies, cryptocurrency businesses, and financial institutions engage confidently with cryptocurrency, has indicated that Nigeria topped the adoption chart in the African continent, ranking #11 in the world with an adoption score of 0.521.
The report showed that Kenya, which topped the ranking chart last year in Africa, came third in Africa with an adoption score of 0.397, ranking #19 and trailed Morocco, which came second and ranked 14th, with an index score of 0.507.
The report findings further reflected that the two countries had significantly improved in their adoption score with Nigeria gaining 100.39%, from a 0.26 index score in 2021 and Kenya, gaining 41.79%, from an index score of 0.28 in 2021.
Analysts believe that though there are improvements in both countries’ scores, however, their rankings have significantly dropped as both are now out of the top 10 rankings compared to last year, when Kenya and Nigeria ranked 5th and 6th respectively.
The firm’s cryptocurrency adoption report ranks countries by focusing on five major indexes which include On-chain cryptocurrency value received at centralized exchanges, weighted by purchasing power parity (PPP) per capita, On-chain retail value received at centralized exchanges, weighted by PPP per capita, and Peer-to-peer (P2P) exchange trade volume.
Others are weighted by PPP per capita and number of internet users, On-chain cryptocurrency value received from DeFi protocols, weighted by PPP per capita, and On-chain retail value received from DeFi protocols, weighted by PPP per capita.
The Chainalysis further reported on the ranking methodology, that “in order to calculate our sub-indexes, we estimate countries’ cryptocurrency transaction volumes for different services and protocols based on the web traffic patterns of those services’ and protocols’ websites.
“Relying on web traffic data means that usage of VPNs and other products that mask online activity but given that our index takes into account hundreds of millions of transactions, VPN usage would need to be extremely widespread to meaningfully skew our data”, it added
Similarly, the report indicated that its report did not rank the countries in question-based on raw cryptocurrency transaction volume, which would give a straightforward view of where the most cryptocurrency activity is happening.
The firm clarified: “While institutional activity is important to that, we also want to highlight the countries where individual, non-professional investors are embracing digital assets the most.”
