Brazil is losing momentum in cryptocurrency adoption and falling in the world rankings

Brazil has lost its momentum in the adoption of cryptocurrencies, according to a new world ranking released on Tuesday (12) by the company Chainalysis.

The ‘Global Crypto Adoption Index’, released annually, reveals important information about the market. For example, in the 2022 edition, the global rankings placed Brazil seventh worldwide in cryptocurrency adoption.

Furthermore, the country was the only country in all of Latin America to be among the TOP 10 countries in cryptocurrency adoption. With high inflation in Brazil, investors took refuge in decentralized digital currencies, where governments or companies did not interfere.

Brazil drops to ninth position in the global rankings of cryptocurrency adoption, India becomes the largest market

In one year, the world experienced several political and economic changes, which had a direct impact on the adoption of cryptocurrencies.

One of the most important examples of such a paradigm shift involves a game of musical chairs that is practiced worldwide, such as India, which has jumped from fourth to first place. In other words, the country with the second largest population in the world is today the largest global crypto market.

Global cryptocurrency adoption map, by Chainalysis
World map of cryptocurrency adoption, by Chainalysis.

Brazil lost its seventh position and dropped to ninth in just one year. In other words, despite still being relevant as the largest Latin American crypto market, Brazilian investors have lost interest.

The study analyzes five indices from all 154 countries and classifies who the largest markets are.

TOP 10 countries in cryptocurrency adoption, by Chainalysis
TOP 10 countries in cryptocurrency adoption, by Chainalysis.

Argentina also lost steam, and Latin America is losing prominence

In addition to Brazil, the 2022 rankings included three other Latin American countries that adopted cryptocurrencies, namely Argentina (13th), Colombia (15th) and Ecuador (18th). In other words, four Latin American countries were among the twenty with the highest adoption of cryptocurrencies.

However, in the 2023 edition, only three countries appear in the rankings representing Latinos. One of the new features is the departure of Colombia and Ecuador from the TOP 20. In addition, Argentina lost two positions, dropping from 13th to 15th position.

Another positive news in the region is the arrival of Mexico, which occupies 16th place after not being ranked in 2022.

With this, the Latin American region now has the representation of Brazil (9th), Argentina (15th) and Mexico (16th), leaving three countries in great popularity.

TOP 11 to 20 in cryptocurrency adoption, by Chainalysis
TOP 11 to 20 in cryptocurrency adoption, by Chainalysis.

The Chainalysis study finds that the Central South Asia and Oceania (CSAO) region dominates the top spot among countries with the highest adoption, accounting for six out of ten countries in this region.

Until June 2023, when the study analyzed the adoption of countries, everything indicates that the volume of cryptocurrencies is the same as at the end of 2020. In other words, the market is experiencing a decline in activity, even though 2023 started with investor reactions.

Global cryptocurrency adoption chart
Global cryptocurrency adoption graph, reproduction.

Source: Live Coins