results of the previous report, Chainalysis defends that DeFi
adoption differs from those of cryptocurrencies precisely because participants seek to generate profits with their assets, instead of just protecting their capital or seeing them as long-term static investments.
The analysis and research firm Chainalysis published yesterday a report in which it presents its new ranking of global DeFi
adoption for this 2021, in which Argentina and Brazil are among the 20 nations with the highest levels.
About the study conducted by Chainalysis
Like the study previously presented in relation to the adoption of cryptocurrencies, this new report aims to present an objective measure associated with the countries that register the highest levels of adoption within the space of decentralized finance (DeFi)
. To this end, the highest estimated user base is primarily benchmarked, rather than the highest volumes of capitalized transactions among participating nations.
Since the measurement of this indicator suggests a greater complexity with respect to the previous study, Chainalysis
relied on three indicators to make the corresponding measurements:
- Component 1: Cryptocurrency value received by DeFi platforms weighted by the average purchasing power (PPP) of residents per capita.
- Component 2: Total value received at the retail level by DeFiplatforms.
- Component 3: Individual deposits made to DeFiplatforms.
Considering the aforementioned aspects, the researchers evaluated these components in a total of 154 countries, prioritizing the cases of those with lower purchasing power parity (PPP)
among residents, as well as those with lower number of users connected to the Internet.
Argentina and Brazil among the 20 countries with the highest DeFi adoption
Once the results were obtained for the previously mentioned indicators, the Chainalysis
processed the results and presented in a table the 20 countries with the highest DeFi
adoption in the last year.
Among the first positions we have USA, Vietnam, Thailand, China and UK respectively, but in Latin America two of the four countries that were in the last ranking are present again. This time we have Argentina in 16th place, followed by Brazil in 17th place
. <img src=”“image/gif;base64,R0lGODlhAQABAIAAAAAAAAAP/////yH5BAEAEAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA7″ alt=”Ranking 2 Chainalysis” width=”495″ height=”403″ />Ranking of the 20 countries with the highest DeFi adoption. Image by Chainalysis
Among the considerations presented by Chainalysis members , one factor to consider is that DeFi
adoption differs to a large extent than the motives that drive people to invest in cryptocurrencies, especially in countries with less robust economies. In that sense, they claim that those who participate in the decentralized finance sector do so with the intention of deriving profits and multiplying their capital, rather than just seeking to protect their purchasing power from inflationary processes.
In this sense, the presence of countries such as Argentina and Brazil in the ranking of countries with the highest adoption of DeFi
reflects a greater awareness on the part of residents in the nature of this market, so there is an interest in making savings and generating dividends with digital currencies by participating in the dynamics offered by the platforms consulted for this study.
Other data of interest
Among other data of interest made visible by the study, the researchers highlight that between April 2021 and June 2020 the highest web traffic to the DeFi
protocols came from North America, but that little by little the participation of residents in Western Europe was increasing towards the end of the period. Subsequently, in the following months there was a greater presence of Asian countries among the most demanded services in the sector.
One aspect to highlight is that in 2021 institutional participation in the DeFi sector increased ,
given that 60% of the transactions between the main platforms involved movements of over USD $10 million, with the rest of the capital remaining in the hands of small and medium-scale investors.
But perhaps most notable is the presence of countries with much more established institutional and professional markets within the DeFi
space. The US is in first place, China is in fourth place followed by the UK in fifth place. Also present are nations such as Canada, Poland, France, Australia, Switzerland and other countries with remarkable economies.
And in closing, the researchers have expectations that the DeFi
sector will continue to grow in the coming years, especially thanks to how lucrative this sector is becoming as opposed to the existing investment proposals in the traditional ecosystem, and by the rapid adoption that are registering traditional digital currencies, especially in less developed economies internationally.
Di Matteo / DiarioBitcoin
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