Emerging Markets Drive Global Crypto Adoption: India Leads Alongside Nigeria in New Chainalysis Rankings

The Surge of Grassroots Blockchain Activity in Developing Economies

The latest Chainalysis Global Crypto Adoption Index reveals a striking shift in global cryptocurrency adoption patterns, with emerging markets taking center stage. India has emerged as a dominant force in this transformation, alongside other lower middle-income nations such as Nigeria. This shift underscores how grassroots activity and decentralized finance are reshaping the blockchain landscape far beyond traditional financial hubs.

How the Chainalysis Index Measures Real Adoption

Rather than relying on raw transaction volumes alone, the Chainalysis framework employs a sophisticated five-dimensional approach to evaluate crypto adoption across nations:

The measurement framework includes:

• Total on-chain cryptocurrency value received across all networks
• Retail participation at both centralized platforms and DEX protocols
• Peer-to-peer trading volumes, which capture truly grassroots momentum
• Decentralized finance activity levels
• Purchasing power parity adjustments that reflect economic reality rather than nominal figures

This methodology ensures that the index captures both institutional momentum and community-driven adoption, providing a nuanced picture of where blockchain technology is genuinely gaining traction.

Why Lower Middle-Income Nations Are Leading the Charge

Countries like India and Nigeria represent approximately 40% of the global population, yet their crypto adoption significantly outpaces their share of traditional financial infrastructure. The reasons are multifaceted:

Economic drivers fueling adoption: In regions where banking infrastructure remains limited, cryptocurrency offers a parallel financial system. Individuals can participate in P2P exchanges without intermediaries, enabling direct peer transfers and commerce.

Diverse applications beyond trading: Vietnam and the Philippines demonstrate how blockchain serves gaming ecosystems, gambling platforms, and remittance corridors. This functional diversity—beyond pure speculation—creates sustainable adoption.

The DeFi revolution in Asia: Between July 2022 and June 2023, decentralized finance accounted for 56% of all transaction volume in the Central and Southern Asia and Oceania region. This concentration reflects how DeFi platforms provide financial access in areas where traditional services are inaccessible or prohibitively expensive.

India’s Position: Resilience Despite Fiscal Headwinds

India’s ranking atop the adoption index is particularly noteworthy given local regulatory constraints. Capital gains taxation on crypto profits creates friction for traditional traders, yet India’s grassroots ecosystem continues to flourish. P2P exchanges remain vibrant, and DeFi protocols attract sustained participation despite these obstacles.

This resilience demonstrates that genuine utility and community demand can overcome policy challenges—at least when regulatory frameworks don’t impose outright bans.

Regional Divergence: Different Paths to Blockchain Adoption

Central and Southern Asia and Oceania: DeFi dominates the narrative, with India and Vietnam leading transaction volumes. Decentralized protocols offer inclusive financial services without gatekeeping.

Latin America: Remittance corridors and P2P trading define the region’s crypto landscape, addressing critical cross-border payment infrastructure gaps.

Sub-Saharan Africa: Grassroots adoption thrives due to economic necessity and the absence of robust traditional banking alternatives. Community-driven blockchain use cases flourish organically.

The Critical Role of Purchasing Power Parity

Standard adoption metrics can obscure the true scale of emerging market engagement. A transaction of $50 represents vastly different economic activity in Nigeria versus New York. The Chainalysis index adjusts for this via purchasing power parity, revealing that lower middle-income countries punch well above their weight in real economic terms.

This adjustment validates India’s leadership position and highlights why emerging markets matter disproportionately to blockchain’s long-term trajectory.

Institutional Capital Meets Grassroots Energy

Interestingly, high-income nations are simultaneously increasing institutional DeFi participation. Even amid market downturns, sophisticated investors recognize the potential of decentralized protocols. This creates a bifurcated adoption curve: grassroots-driven growth in emerging markets paired with institutional experimentation in developed economies.

Regulatory Environments: The Double-Edged Policy Question

Government approaches dramatically shape adoption trajectories. El Salvador’s legal tender status for Bitcoin created a unique laboratory for blockchain integration. Conversely, restrictive regimes throttle innovation and drive activity to decentralized channels.

India’s scenario sits between these extremes—neither hostile nor welcoming, yet adoption persists through informal channels and grassroots networks.

Distinct Use Cases Reflect Local Contexts

Philippines: Roughly 20% of cryptocurrency-related web traffic channels toward gaming and gambling applications, reflecting how blockchain solves real entertainment and income needs.

Vietnam: Combines P2P trading intensity with diverse use case experimentation, creating a robust ecosystem.

India: Leverages both P2P exchange infrastructure and DeFi platforms as alternative financial conduits.

What’s Next for Emerging Market Blockchain Adoption

As 40% of humanity resides in lower middle-income regions with growing digital populations, the blockchain adoption curve in these markets will determine global trajectory. Key catalysts include:

• Education initiatives that demystify blockchain technology and build technical literacy
• Infrastructure improvements enabling faster, cheaper on-chain transactions
• Balanced regulatory frameworks that encourage experimentation while maintaining consumer safeguards

The convergence of grassroots demand, technological maturation, and selective policy support positions emerging markets—particularly India and Nigeria—as the true growth engines for global blockchain adoption in the coming decade.