Crypto Adoption in 2023: What’s on the Horizon?

BingX
8 min readDec 15, 2023

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Image from Statista

Cryptocurrency adoption has skyrocketed in recent years, with more people than ever embracing digital assets. Still, a large number of people around the world have yet to use or adopt cryptocurrencies.

Countries such as India, Nigeria, Vietnam, the United States, and Ukraine are the countries leading in the 2023 grassroots crypto adoption rate. However, stats show that crypto is still in the early stages of mainstream adoption.

In this article, we analyse the latest data, trends, and expert predictions to uncover what’s on the horizon for crypto adoption. Key areas explored include global adoption metrics, emerging markets, regulations, technology advances, demographics, and specific technologies driving new users.

Crypto Adoption Index in 2023: Countries With the Largest Rate of Adoption

According to a recent compilation from Chainalysis regarding crypto adoption, there are new countries in the block. Their report titled The 2023 Global Crypto Adoption Index showed how the crypto industry fared in adoption/acceptance. Many factors were used in making evaluations including DeFi protocol crypto and retail values, trade volumes on centralized exchanges and services, and peer-to-peer trade volume.

However, the highlight of this report was about grassroots crypto adoption in the countries involved in the report.

Image from Chainanalysis

In 2023, many countries did relatively better than others regarding the amount of crypto adoption rate. Even as the hub of crypto activities, the United States of America didn’t take the number one position, according to a recent report. In 2023, India led the lines in the rate of crypto adoption in the country. This comes after the numerous interests and attempts of Indian leaders in the G20 to establish a worldwide crypto regulatory framework.

The second country in the recent report on crypto adoption in 2023 is Nigeria, which shows the amount of progress going on in African countries. Vietnam even came third in the rankings, with the United States taking the fourth position. This showed how developing markets are playing an increasingly important role in driving crypto forward.

According to the rankings, the United States didn’t lead in any criteria and came 12th in the P2P exchange trade volume rankings. Another major takeaway from the report is that the Central & Southern Asia and Oceania (CSAO) regions dominated the top 10 global crypto adoption rankings. As new countries pop up in the global crypto adoption rankings, the worldwide adoption rate still needs to be higher than the levels we saw in 2021 and early 2022.

Why Global Crypto Adoption Is Down Compared to 2021 Levels

After all that happened in 2022, with FTX Exchange and other critical crypto firms crumbling and filing for bankruptcy, the level of trust in the crypto industry reduced drastically. Even those in the crypto industry before these events reduced their activities in the crypto market and community. So, 2023 has been more of a recovery year for the crypto market, and the same applies to the charts of crypto adoption. According to data from Chainanalysis, the crypto industry was close to reaching the 1.00 mark in terms of adoption in 2021. Fast forward to Q4 of 2022, the score was lower than 0.25, which was very poor but also showed the industry’s situation.

However, according to data dating back to the Q2 of 2023, the crypto adoption score is currently above the 0.25 benchmark. While this is still poor, it is an improvement from the levels the crypto market saw after the FTX Scandal of 2022.

Yes, the crypto adoption score is slowly recovering, and it is being championed by developing countries. According to data, Lower middle-income (LMI) countries will drive crypto adoption rate recovery by 2023. The recovery rate in these Lower middle-income (LMI) countries is far higher at a higher speed than in middle or higher-income countries.

Crypto Adoption in 2023: Analysis of Each Continent/Region

Below is a critical analysis of the crypto adoption rate and situation of each region or continent worldwide.

North America

Image from Chainanalysis

According to the report from Chainanalysis, North America is the largest region in terms of crypto usage. This is despite coming fourth in the rate of crypto adoption and the increasing regulatory issues within the country. The amount/value of cryptocurrencies received in North America represents more than 24% of those worldwide. The total value of cryptocurrencies accepted in this region is over $1.2 trillion. The United States alone contributes over $1 trillion, while Canada and Bermuda contribute less than $250 billion.

Latin America

Image from Chainanalysis

Compared to some of the economies in this region, Latin America is doing well in the amount of cryptocurrencies received from June 2022 to June 2023. According to data, the value of cryptocurrencies received within this region represents more than 7% of the global landscape. The top five countries that stand out in this region are Argentina, Brazil, Mexico, Columbia, and Venezuela.

Central, Northern, & Western Europe

Image from Chainanalysis

Central, Northern, & Western Europe is another heavyweight in the crypto industry regarding cryptocurrencies received. Although the level of crypto adoption is still down compared to the 2021 levels, there’s an increase in the value of cryptocurrencies received in this region from June 2022 to June 2023. The total value of cryptocurrencies received in this region represents about 17.6% of the global landscape, with the United Kingdom taking the first position. Central, Northern, & Western Europe received approximately $1 trillion worth of crypto.

Eastern Europe

Image from Chainanalysis

The level of crypto adoption in Eastern Europe is performing beyond analysts’ expectations despite the raging war in Ukraine. One can see this with the amount of cryptocurrencies received within this region, with more than $445 billion. This is according to data collected between June 2022 and June 2023. Within this region, Russia leads in terms of crypto received at more than $150 billion, while Ukraine follows closely behind. However, the level of grassroots adoption in these two countries needs to be higher.

Central & Southern Asia and Oceania

Image from Chainanalysis

Central & Southern Asia and Oceania are some of the most promising and dynamic crypto regions worldwide, and they are also experiencing increasing adoption. India, Vietnam, Thailand, Indonesia, and the Philippines are the top-ranking countries in this region regarding cryptocurrencies received. According to reports, this region of the world dominates in terms of crypto grassroots adoption.

Eastern Asia

Image from Chainanalysis

Eastern Asia has seen a mammoth decline in crypto adoption, especially in areas like China, where the government banned anything related to cryptocurrency. However, many other states are rising to replace China in terms of crypto usage and adoption, such as Hong Kong.

Middle East & North Africa

Image from Chainanalysis

The Middle East & North Africa are having a substantial amount of growth in the rate of crypto adoption. Areas like Turkey and the United Arab Emirates are the two major states with an increased adoption rate. Especially with the UAE, they are mostly known for their improved and clear crypto regulation. This is driving a lot of crypto enthusiasts and firms to this region.

Sub-Saharan Africa

Image from Chainanalysis

Although the Sub-Saharan African region is ranking very low in terms of cryptocurrencies received, they are growing at a speedy rate in grassroots crypto adoption. One can see this after a country in this region, Nigeria, came second in the global grassroots crypto adoption index by Chainanalysis in 2023.

Ways to Increase The Mass Adoption Of Cryptocurrencies

Research shows that the younger generation investors own crypto at double the rate of older cohorts. This is because they’re more comfortable with digital technologies and distrust traditional finance more. As these demographics age and accumulate wealth, crypto ownership will grow exponentially.

The following are helpful factors to improve global crypto adoption;

Education

Education is one of the significant ways to help drive the adoption of cryptocurrencies among those who aren’t fans of the industry. Around the world, some have yet to hear about crypto, and those who know about it have some misconceptions. This makes educating people on how the technology works a priority, which will remove negative misconceptions and increase adoption.

Enhanced Accessibility

Many have heard about the crypto industry, but the reason they aren’t using it yet is due to a lack of accessibility. Crypto exchanges and products should be made more available to several regions worldwide and not only concentrated in the US or Europe. For example, PayPal allows crypto buying from its app, and BingX’s simple Bitcoin buying process makes digital assets easily accessible to new demographics.

Emerging Technologies

Beyond currencies, applications like decentralized autonomous organizations (DAOs) and non-fungible tokens (NFTs) are expanding the crypto user base.

While DAOs allow collaborative projects without centralized control, NFTs provide proof of ownership for digital creations. As these technologies evolve, associated cryptocurrencies will gain traction too.

Regulatory Clarity

Some people are afraid to use cryptocurrencies due to the absence of regulatory clarity on the operations of cryptocurrencies. To a large extent, regulation is essential in the crypto industry to reduce the amount of scams and fraud. With regulatory clarity, more people will be confident using cryptocurrencies without being scammed. Overly restrictive rules may suppress activity, while sensible regulation removes barriers.

Increased Real-Life Applications

The fact remains that while many cryptocurrencies have real-life applications, some others don’t, and this is driving a lot of people away from the industry. More people can be attracted to the crypto scene when it can improve utility with day-to-day use cases, such as paying regular bills.

Crypto Outlook Remains Bright

After the crypto bear market of 2022 and other series of negative events, the rate of crypto adoption is having a slow recovery. Fueled by the above drivers, analysts predict adoption will continue to surge well into 2023 and beyond.

Regulatory progress, tech advances lowering barriers, and the rise of digital native generations ensure crypto has great potential ahead. As institutions embrace crypto, individual investment will follow.

In conclusion, a confluence of favorable trends points to another strong year of crypto growth ahead. With emerging markets, regulations, accessibility improvements, and new technologies contributing to demand — 2023 looks bright for wider cryptocurrency adoption worldwide.

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BingX

Founded in 2018, BingX is a leading cryptocurrency exchange, serving over 5 million users.