Chainalysis Releases Its DeFi Adoption Index Analysing Different Markets Across the Globe

Chainalysis Releases Its DeFi Adoption Index Analysing Different Markets Across the Globe

While concerns remain around DeFi’s safety and compliance obligations, it represents one of the fastest-growing and most innovative sectors of the cryptocurrency economy. That’s why this year, Chainalysis , the blockchain data platform, decided to create a new geographic index ranking countries by Defi adoption specifically. Similar to its Crypto Adoption Index, the Defi Adoption Index is designed to highlight countries with the highest grassroots adoption by individuals, rather than those sending the largest raw values of funds. The data suggests that while grassroots cryptocurrency adoption generally is highest in emerging markets, Defi adoption is strongest in high-income countries that already had substantial cryptocurrency usage, especially amongst traders and institutional investors. Chainalysis’ methodology The Defi Adoption Index is made up of three component metrics. They rank all 154 countries according to each of those three metrics, take the geometric mean of each country’s ranking in all three, and then normalise that final number on a scale of 0 to 1 to give every country a score that determines the overall rankings. The closer the country’s final score is to 1, the higher the rank. Component 1: On-chain cryptocurrency value received by Defi platforms weighted by PPP per capita The goal