Vietnam, Pakistan, and India are the top countries responsible for the growing adoption of cryptocurrencies in the Central, Southern Asia, and Oceania (CSAO) regions, popular blockchain analysis firm Chainalysis reports.
The CSAO region, which is the fourth largest crypto market, saw $572.5 billion in value recorded between July 2020 and June 2021, representing 14% of the entire global transaction value within the period.
In general, the report suggested that the entire CSAO crypto market increased by 2%, making the region one of the fastest-growing markets in the world.
DeFi Key to CSAO Crypto Adoption
While several factors were studied to determine what could have prompted mass cryptocurrency adoption in CSAO, decentralized finance activity was highlighted as the major reason investors are flocking into the crypto space.
Per the report, a vast majority of the total cryptocurrency transactions were sent to various DeFi platforms like Uniswap, InstaDApp, dYdX exchange, Compound, Curve, Aave, 1Inch, and 0xProtocol, among others.
Notably, the largest size of transactions tagged as Professional-sized transfers saw investors in the region transfer between $10,000 and $1 million to different DeFi protocols, which represents 56% of the entire DeFi investments.
Growing Global DeFi Activity
The global DeFi market has witnessed a massive boom since the mid-last year, with activities in the sector skyrocketing around the first two months of this year.
Chainalysis in its recent report noted that the CSAO’s DeFi market surge was experienced in February this year, growing by more than 50% within the period.
Although several investors are now delving into other sectors of the crypto market, like non-fungible tokens (NFTs), that have not stopped large volumes of capital from being locked across various DeFi protocols.
Data on DeFi Pulse suggests that the total value of assets locked in different DeFi protocols is $90.04 billion, with popular lending platform Aave leading the ranking.
Meanwhile, CSAO is not the only region studied in the Chainalysis Global Cryptocurrency Adoption Index report. Last week, Coinposters reported that Europe became the largest cryptocurrency economy after receiving over $1 trillion worth of cryptocurrencies over the last year.