Cryptocurrencies have long been considered entirely incompatible with the standard financial system, a fact that is unsurprising given that the coins operate in a decentralized system that differs significantly from traditional ones. Operating without third-party assistance is what attracted investors to the marketplace in the first place, as they enjoy the anonymity the blockchain provides. However, over the last few years, the coins have been entering the mainstream in increasing numbers. Many saw this as a good sign, an indication that the coins are starting to mature and become more reliable.
The regulatory framework has also begun to evolve, with an increasing number of countries seeking ways to integrate cryptocurrency, particularly after institutional investments and accumulation have continued to gain momentum. However, that doesn’t mean traders don’t have to design comprehensive strategies anymore. Being aware of the shifts in the BNB price, the macroeconomic conditions, the volume, and engagement rates can help tremendously, as they allow you to have at least a rough idea of where this fast-paced market will go next.
Some researchers point out that the regulations could create further issues in the environment in the long term, as nations have come up with different legislation. This means that cross-border trading can become difficult as the jurisdictions have to align with rules that are not implemented where they are. And while the markets in the United States and the European Union are typically discussed when it comes to adopting crypto, several other markets have started picking up speed. In fact, analysts believe that these are the areas where real adoption has begun to take place.
An overview
The reason why the EU and the US are discussed so often is due to their complex tackling of regulatory issues, as both have sought to find clarity in this area and end excessive speculation. However, fixating on the two means that investors and researchers alike will remain unaware of the changes occurring in the larger, global marketplace where adoption rates are growing significantly. There are some who believe that the legitimacy of cryptocurrencies depends on regulatory acceptance and institutional capital, so for them, the idea that crypto can thrive in emerging markets is rather unlikely.
But the figures indicate something else, so even if these areas are often unfairly overlooked, they still have a huge impact on the larger market environment. According to recent data, India is number 1 in terms of crypto adoption, and that for the third consecutive year. Nigeria, Vietnam, and the Philippines follow right behind. The thing that sets them apart is that engagement in these marketplaces isn’t driven by the wish to speculate on a new asset class. Instead, the traders are looking to actively boost and improve their financial condition and bring genuine utility to their portfolios.
As a result, real growth occurs because the investors are serious about the market and what it has to offer. This is the kind of involvement that can actually move monetary systems and fuel growth.
Why crypto
According to Richard Teng, CEO of Binance.com, when it comes to crypto, “Global adoption often starts with a single domino.” The reasons why investors might want to include cryptocurrencies in their portfolio are diverse, as the benefits one can obtain from purchasing and owning crypto are also broad. Some want the assets to strengthen their portfolios, others seek them to gain access to a completely decentralized asset, and then there are those who are convinced that cryptocurrencies are the future and that owning them is an absolute must.
In many cases, people find cryptocurrencies to be much more stable than their local fiat currencies, so they gravitate towards them as a means of protecting their portfolios. Argentina is one such example. Its inflation has historically been very high, and while it has decreased somewhat, it continues to remain elevated. As a result, many citizens have begun converting their money into stablecoins, not as a means of carrying out trades over the blockchain but in order to maintain value. Using dollar-based holdings allows them to pay rent and buy groceries at regular prices. The situation is similar in Nigeria, where crypto is frequently used for cross-border trades and remittances.
The reason for that is that standard money services have incredibly steep fees in Nigeria, leading people to look for affordable alternatives. With a user increase rate of almost 20% each year, Sub-Saharan Africa records the fastest increase in the number of crypto users. The data shows that cryptocurrencies have the capacity to address issues pertaining to mainstream economies, a feature that many have considered to be nothing more than make-believe until recently.
Mainstream adoption
If these changes are anything to go by, institutional capital and clear regulations will continue to matter in the crypto world, but they will no longer be the main part of the adoption efforts. The people seeking to escape the traps of inflation and currency depreciation will lead the effort instead. Those working abroad and looking to send money back home to their families will definitely benefit from crypto and the blockchain as well, as they allow them to avoid paying fees of up to 10%. Data from the World Bank shows that in 2024, remittances alone amounted to $685 billion.
If the transaction costs were to decrease by only 1%, billions more could be redistributed to those who require the funds most. Crypto is cheaper, faster, and could make this a reality. In the Philippines, more than a million merchants accept digital coins for all kinds of payments. Some of the regulators are looking to keep up with the market as well. For example, in Nigeria, the central bank established a regulatory sandbox (a temporary environment that is fully controlled and which allows companies to test innovative products such as the blockchain and crypto) and issued new licenses for virtual assets.
To sum up, the crypto market will continue to grow and develop, and a large portion of that evolution could come from emerging economies. The grassroots activity of the traders has the potential to propel the market further and increase adoption rates to record levels.
