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India Ranks 6th in the Global DeFi Adoption Index; US tops

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India 6th biggest country in terms of DeFi adoptionThe 1st Edition of the Global DeFi (Decentralised Finance) Adoption Index was released by Chainalysis.

  • India ranked 6th place out of 154 countries. The United States topped the ranking followed by Vietnam (2nd) & Thailand (3rd) respectively.
  • Objective: It is designed to highlight countries with the highest grassroots adoption by individuals, rather than those sending the largest raw values of funds.
  • The index ranks 154 countries in 3 indicators namely On-chain DeFi value received, On-chain number of DeFi deposits & On-chain retail DeFi value received.
  • The countries are ranked based on the score from 0 (lowest) to 1 (highest)

DeFi (Decentralised Finance)

i.It is a blockchain-based form of finance that does not rely on central financial intermediaries such as brokerages, exchanges, or banks to offer traditional financial instruments, and instead utilizes smart contracts on blockchains, the most common being Ethereum.

ii.Popular types of DeFi protocols include decentralized exchanges and lending platforms.

Rank Country Score
6 India 0.59
1 United States 1.00
2 Vietnam 0.82
3 Thailand 0.68
4 China 0.62
5 United Kingdom 0.60

Key findings of the report:

i.DeFi adoption is strongest in high-income countries or countries that already had substantial cryptocurrency usage, especially amongst traders and institutional investors.

  • Countries like  the United States, China, Vietnam, the UK, and several other Western European countries are exemplifying these trends.

ii.Large transactions: The data shows that large transactions make up a much bigger share of DeFi activity, suggesting that DeFi is mostly popular among bigger investors.

  • Large institutional transactions, those above $10 million, accounted for over 60% of DeFi transactions in Q2 2021 compared with under 50% for all cryptocurrency transactions.

iii.Countries that have historically accounted for the most professional and institutional-sized cryptocurrency transactions are also driving the most DeFi activity.

Recent Related News

In August 2021, the 2nd Edition of Global Crypto Adoption Index 2021 was released by Chainalysis, India ranked 2nd out of 154 counties with a score of 0.37. Vietnam topped the rankings.

About Chainalysis

Chief Executive Officer – Michael Gronager
Headquarters – New York, United States of America