A recent report by Comscore, a measurement and analytics firm, reveals that the Indian cryptocurrency market grew from 6 million users in March 2020 to 17 million users by March 2021. It further expanded by 421% between 2021 and 2022 and reached the 90 million mark in March 2022.
Ironically, digital currency exchanges and the crypto market were almost non-existent in India a decade ago. However, it witnessed tremendous growth over the past three years.
There seem to be no signs of slowing down in the popularity of crypto, and India is now one of the fastest-growing markets worldwide.
In March 2022 alone, about 90 million people accessed a cryptocurrency exchange site. This figure could be higher if you include users who utilize virtual private networks to access overseas trading sites (VPN).
India is second only to Vietnam in terms of crypto user volume. Aside from the huge increase in user adoption, the data shows that in March 2022, users spent over 6.1 billion minutes on crypto exchange platforms, up from 1.7 billion minutes in March 2021.
Here’s a summary of the report:
- India is one of the world’s fastest-growing cryptocurrency markets.
- India’s crypto dealers were unfazed by the country’s shutdown or the global pandemic.
- In reality, the crypto market was almost impervious to the coronavirus and the global damage it inflicted.
- The cryptocurrency market in India expanded from 17 million users in March 2021 to nearly 90 million users in March 2022.
Booming Crypto Popularity
The financial crisis of 2008 was among the key elements that led to the rise of Bitcoin, citing it as a likely reason for crypto’s global user growth. The alternative currency was created to function without the need for the involvement of any centralized entities.
Increased awareness owing to major marketing campaigns targeting Gen-Z consumers, user-friendly app launches, the Bitcoin bull run in late 2021, and the launching of the Shiba Inu coin on WazirX, among other things, propelled the expansion of the cryptocurrency market in India, according to the report.
“The pandemic in 2020 wreaked havoc worldwide, with global economic consequences. As a result, various commodities and assets began to lose value, prompting investors to seek alternative investments. Because the cryptocurrency market was almost resistant to the Coronavirus, it became one of the assets people trusted, particularly in India,” said Visakh Vijayakumar, the report’s client insights partner.
Crypto Exchanges are Rushing for Market Dominance
The growing popularity of cryptocurrency in the country has created numerous successful Indian-based exchanges, including WazirX, ZebPay, and CoinDCX. It’s becoming more mainstream these days.
CoinDCX was the largest cryptocurrency exchange platform in India in March 2022, according to Comscore, with over 40 million users, followed by WazirX and CoinSwitch with 31.7 million and 30.1 million users, respectively. Binance, the fourth most popular cryptocurrency, garnered around 27.6 million users.
However, From April this year, crypto earnings will be taxed at 30%, the highest tax band, with an extra 1% TDS,’ which may impact the country’s crypto growth this year.