Digital Assets: Ukraine, Russia Lead Countries Globally with Higher Crypto Adoption Rates, Report Reveals

Ukraine and Russia lead the list of countries “with higher crypto adoption rates, with 12.73% and nearly 12%, respectively,” according to an update from DappRadar.

DeFi transactions in Q1 hit the lowest levels since February 2021, “while the 116 million NFT transactions across all blockchains set new records in Q1’22.”

Transactions in Avalanche “doubled from the end of 2021, while Ethereum’s activity decreased 8% in the same timeframe.”

The Web3-based metaverse keeps “adding more brands and enthusiasts worldwide; social metrics confirm global interest in this topic.”

As noted in the update from DappRadar, adoption and macro events “accelerate the regulatory process for crypto assets DeFi transactions are on a one-year low while the number of NFT trades reaches record highs.”

DappRadar‘s report further reveals that “the global events that unfolded in the first four months of the year present a unique scenario for blockchain technologies.”

As mentioned in the report, the disruption of the global markets due to Russia’s war on Ukraine “pushed the price of various metal and energy commodities, including Gold, Palladium, oil, and gas, near to or at all-time highs.”

The report further noted that geopolitical landscape “tainted the market with fear causing selling pressure in financial markets, including cryptocurrencies, driving prices down.”

As stated in the update, the fearful sentiment that leads rational investors to use safer investment vehicles “applies to cryptocurrencies such as stablecoins and Bitcoin.”

Thus, it is not rare “to see BTC’s dominance on exchanges trending upwards.”

And even though Bitcoin and other crypto-assets remain highly volatile and strongly correlated with the capital markets, they offer “an ideal hedge against high inflation periods like the one affecting 2022.”

A recent study by Gemini shows that countries with higher inflation rates “are most likely to adopt cryptocurrencies.”

Due to their inflationary hedge property and other advantages presented by Web3 assets, “the demand for blockchain applications remains steady despite the challenging global scenario.”

The undeniable interest and appetite for crypto assets and Web3 concepts like the metaverse and play-to-earn face challenges “present in today’s market from economic, regulatory, and technical perspectives.”

Adoption and macro events “accelerate the regulatory process for crypto assets.”

The adoption of digital assets “is spreading globally, expanding to diverse economies and regions across APAC, Southeast Asia, and Latin America.”

The Asian market is already “undergoing high digital adoption and represents 60% of the global population.”

The report also mentioned that India is “the most prominent crypto market globally, with 100 million crypto owners.”

Meanwhile, 1.2 billion Chinese and 750 million active users “spread across 23 regions of China will begin paying for daily activities in e-CNY by using a beta version of the Digital CNY app.”

Furthermore, countries like the Philippines, Vietnam, Thailand, and Indonesia are “still leaders in crypto adoption and blockchain gaming activity.”

In America, the USA “stands out with the second largest crypto base with 27 million holders.”

Buenos Aires announced, “a Bitcoin payment tax plan, while adoption and regulatory actions are increasing in emerging economies, including Venezuela, Colombia, and Brazil.”

Meanwhile, European nations like the UK, Portugal, France, and Spain “show their interest in Web3’s potential. But the geopolitical implications altered the entire scene.”

Ukraine is one of the countries with “a higher crypto adoption rate worldwide.”

Even before the war, Ukraine and Russia “led the list of countries with higher crypto adoption rates with 12.73% and nearly 12%, respectively.”

However, the crypto activity in both nations “spiked when the war began.” The amount of Ruble exchanged for Bitcoin “surged significantly due to the sanctions on Moscow, while the BTC/UAH pair is still traded at a premium on most exchanges.”

The silver lining for blockchain and cryptocurrencies “is their potential to impact society positively,” the report added while noting that the Web3 community “gathered around Ukraine, collecting north of $60 million in crypto assets to help their cause.”

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