Decentralized Finance (DeFi) is reshaping how individuals interact with financial services, offering permissionless access to lending, borrowing, trading, and yield generation. According to Chainalysis’ latest Global DeFi Adoption Index, the landscape of DeFi usage differs significantly from broader cryptocurrency adoption. While emerging markets lead in general crypto use due to economic instability and high remittance costs, DeFi adoption is primarily driven by high-income nations—with the United States ranking first, followed by Vietnam and Thailand in the top three.
This surprising distribution reveals a nuanced reality: DeFi remains largely a domain for experienced users and institutional participants, rather than grassroots financial inclusion tools. Let’s explore the methodology behind the rankings, analyze key country performances, and uncover what drives DeFi engagement across regions.
How the Global DeFi Adoption Index Is Measured
Chainalysis evaluates DeFi adoption using three weighted metrics designed to reflect real-world user behavior and accessibility:
1. Value Received by DeFi Platforms (PPP-Adjusted)
This metric measures the total value of tokens sent to DeFi protocols, adjusted for purchasing power parity (PPP) per capita. Countries with lower PPP receive higher weightings—meaning that a $1,000 deposit in a lower-income country contributes more to its ranking than the same amount in a wealthier nation. This adjustment helps level the playing field and highlights meaningful participation relative to local economic conditions.
2. Small Transaction Volume on DeFi Platforms
To capture retail-level activity, Chainalysis tracks transactions under $10,000 sent to DeFi protocols. These smaller transfers indicate broader participation beyond whales and institutions. Again, values are PPP-adjusted to emphasize grassroots adoption in developing economies.
3. Share of DeFi Users Relative to Internet Penetration
This metric calculates the proportion of a country’s internet users who actively engage with DeFi platforms. A nation with fewer internet users but high DeFi transaction frequency ranks higher—highlighting concentrated, active usage rather than raw volume alone.
These combined indicators provide a holistic view of both scale and inclusivity in global DeFi adoption.
Top Countries in DeFi Adoption
The top five countries in Chainalysis’ 2025 Global DeFi Adoption Index are:
- United States
- Vietnam
- Thailand
- China
- United Kingdom
Hong Kong and Togo round out positions 19 and 20, respectively.
While the U.S. leads due to its mature crypto infrastructure, deep liquidity pools, and strong institutional interest, the presence of Vietnam and Thailand in the top three is particularly noteworthy. Both countries rank lower in average income but show robust grassroots engagement—especially in small-value DeFi transactions.
👉 Discover how emerging markets are redefining decentralized finance participation.
Regional Traffic Trends in DeFi Usage
From April 2019 to June 2020, North America (dark green) dominated DeFi platform traffic. Western Europe (light green) saw steady growth starting September 2019, reflecting increasing regulatory clarity and investor interest.
Meanwhile, South and Southeast Asia (yellow) began a significant upward trend after mid-2020. This surge aligns with rising smartphone penetration, localized DeFi education initiatives, and growing distrust in traditional banking systems—particularly in countries like Vietnam and Thailand.
Despite this momentum, much of the activity still stems from technically savvy users navigating complex interfaces, suggesting that user experience remains a barrier to mass adoption.
Why High-Income Nations Dominate DeFi
Unlike general cryptocurrency adoption—which thrives in emerging economies due to inflation hedging and cheaper cross-border payments—DeFi usage favors countries with advanced digital infrastructure and financial literacy.
Chainalysis notes that large transactions (over $10 million) accounted for more than 60% of all DeFi activity in Q2 2025. These “whale” movements point to institutional dominance, where hedge funds, DAO treasuries, and professional traders control significant capital flows.
High-income countries offer several advantages:
- Greater access to stable internet and hardware
- Higher tolerance for technological complexity
- Stronger legal frameworks enabling custodial solutions
- More developed tax and compliance guidance for crypto assets
As a result, even though users in lower-income countries may participate more frequently in small transactions, they often lack the capital or tools to engage deeply with advanced protocols like leveraged lending or liquidity provision.
The Exception: Vietnam and Thailand’s Rise
So why do Vietnam and Thailand rank so highly despite lower average incomes?
Several factors contribute:
- Tech-savvy youth populations eager to experiment with blockchain
- Strong local developer communities building DeFi frontends and educational content
- High mobile-first adoption, allowing easy access via smartphones
- Growing distrust in centralized financial institutions
In Vietnam, government crackdowns on crypto trading have paradoxically pushed users toward decentralized alternatives—where no single entity controls funds. Similarly, Thai entrepreneurs are leveraging DeFi for cross-border commerce and remittances without relying on traditional banks.
👉 See how mobile-first users are transforming decentralized finance globally.
Frequently Asked Questions (FAQ)
Why isn't cryptocurrency adoption the same as DeFi adoption?
Cryptocurrency adoption often reflects peer-to-peer transactions and remittances—common in developing economies facing inflation or banking limitations. In contrast, DeFi requires interaction with smart contracts, wallets, gas fees, and complex interfaces, creating a steeper learning curve better suited to tech-literate users in wealthier nations.
Are small investors participating in DeFi?
Yes—retail participation is growing. The small transaction metric shows increasing activity below $10,000. However, their overall capital contribution remains dwarfed by institutional players controlling millions per trade.
What role does internet access play in DeFi adoption?
Internet penetration is crucial. Even if users are interested, limited connectivity or outdated devices hinder interaction with dApps. That’s why countries with high mobile internet coverage—like Thailand and Vietnam—show stronger relative engagement despite lower GDP per capita.
Is China really fourth in DeFi adoption despite its crypto ban?
While China bans centralized exchanges and ICOs, it does not fully restrict access to blockchain data or non-custodial wallets. Many Chinese users operate through offshore accounts or decentralized tools, allowing continued participation in global DeFi ecosystems.
Can DeFi become truly global?
For mass adoption, user experience must improve dramatically. Simplified onboarding, better security defaults, and localized support are essential. Projects focusing on wallet abstraction, gasless transactions, and AI-powered interfaces may bridge the gap between advanced users and everyday consumers.
What are the risks of using DeFi platforms?
DeFi carries risks including smart contract vulnerabilities, impermanent loss in liquidity pools, rug pulls, and lack of regulatory protection. Users should conduct thorough research and avoid investing more than they can afford to lose.
The Road Ahead for Global DeFi Growth
While current data shows a clear bias toward high-income nations, the future of DeFi lies in democratization. As layer-2 solutions reduce fees, wallet innovations simplify access, and educational resources expand globally, we may see a shift toward more balanced participation.
Countries like Vietnam and Thailand prove that economic status alone doesn’t determine innovation appetite. With the right tools and incentives, emerging markets could soon lead not just in crypto usage—but in shaping the next generation of decentralized financial products.
👉 Start your journey into secure, accessible decentralized finance today.
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