According to a recent report from blockchain analysis company chainalysis, decentralized finance ( DeFi ) adoption was primarily driven by experienced cryptocurrency investors and traders. This explains why it is more popular in high-income countries that have established cryptocurrency user bases.
Chainalysis state
According to the report, while emerging markets are driving cryptocurrency adoption around the globe, the important role of experienced traders and investors in DeFi’s growth highlights the differences between the DeFi ecosystem (and the wider crypto ecosystem).
Chainalysis stated that DeFi will follow the same pattern of cryptocurrency services as those before it. If so, then it will be interesting to see if a wider range of people adopt it for tangible benefits other than speculation.
These findings are based on the 2021 Global DeFi Adoption Index, which ranks 154 countries based on three metrics: on-chain cryptocurrency values received by DeFi platform weighted with PPP (purchasing power parity), total retail value received DeFi platforms and individual deposits to DeFi platform.
Chainalysis points out that many countries that have achieved top rankings in terms of grassroots DeFi adoption, and their 2021 Crypto Adoption Index report shows high volumes of cryptocurrency value, both current and past.
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