Crypto Adoption Rate in Indonesia to Why ETH Prices Dropped After The Merge

BONSERNEWS.com – Adoption of crypto assets in Indonesia is believed to continue to grow for the next 10 years. A recent research from Chainalysis released an index that measures global crypto adoption in 2022, the result is that Indonesia is in 20th place.

Chainalysis stated that in the 2022 Global Crypto Adoption Index, Indonesia is included in the category of lower middle-income developing countries that have high growth in crypto adoption. Although, Indonesia lost to Vietnam which occupied number one.

Chairman of the Association of Indonesian Crypto Asset Traders (ASPAKRINDO), Teguh Kurniawan Harmanda, sees Indonesia’s inclusion in the 2022 Global Crypto Adoption Index version of Chainalysis as quite encouraging. This is because in the same report last year, Indonesia had not yet entered the top 20 countries.

Also Read: Causes of the continued decline in Crypto Assets, Check Out the Full Review!

“This report is enough to prove that the growth of crypto assets in Indonesia is still going well, even though the market is sluggish. This high adoption of crypto is driven by broader technology penetration and ongoing investment education, along with safe regulations protecting consumers,” said the man who is familiarly called Manda

According to Manda, crypto adoption in Indonesia is better than last year, even during the crypto winter period. The aspect of the value of crypto asset trading transactions in Indonesia has indeed tended to decline, especially since early 2022.

For example, in June 2022, the value of crypto transactions was recorded at only IDR 20 trillion, down 65.5% compared to the June 2021 period of IDR 58.06 trillion. The decline was caused by the macroeconomic conditions and high inflation in several countries.

Also Read: The Development of Crypto in Indonesia is Very Fast, Crypto Transactions Reach IDR 212 Trillion

Web3 and Blockchain Adoption

Manda explained that it may seem that now investors are moving away from more traditional crypto assets like Bitcoin given the bearish market, they are starting to turn to assets built with interesting utility projects in the Web3 world, metaverse and other elements of blockchain technology that make them more accessible.

“Adoption in Indonesia is driven by more traditional crypto assets offered through exchanges and financial technology platforms. However, on the other hand, traditional crypto instruments are now less desirable, currently high growth is in Web3-based crypto projects where many are turning to applications, such as NFTs and games,” explained Manda.

Furthermore, Manda revealed that the development of the blockchain industry, especially Web3 in Indonesia, is now much better and more widely known by the public. Web3 has transformed into a new field that has greater development potential and benefits, because it talks about future technology with a concept that is almost the same as the internet.

Apart from the adoption rankings, the Chainalysis report also shows that although crypto adoption has been slower amidst a bear market, it is still higher than the period before the bull run in 2020.

“We believe crypto assets, Web3 and everything else in the blockchain world will see quite high and widespread adoption in the next 10 years. To spur adoption, the user experience must improve. Security is also important, for example crypto players must be licensed and certified. Then , education about the benefits and uses of technology developed to gain a high level of trust in society,” concluded Manda.