According to a recent report from Chainalysis, India ranked second globally in terms of estimated raw cryptocurrency transaction volume.
The report reveals that India's crypto market is outperforming the UK, Turkey and Russia, which rank behind the country despite complexities surrounding tax laws.
The Chainalysis report states that India leads the world in grassroots adoption as per the Global Crypto Adoption Index.
The country recorded a staggering volume of approximately $269 billion in Bitcoin and cryptocurrencies from July 2022 to June 2023. This impressive growth occurred despite a challenging regulatory and tax environment for the industry.
According to the report, the Central and South Asia and Oceania (CSAO) region, which includes India, hosts one of the most dynamic and impressive cryptocurrency markets in the world. CSAO is the third largest crypto market in terms of raw trading volume, behind North America and Central, Northern and Western Europe (CNWE). The region accounts for just under 20% of global activity.
When purchasing power and population are taken into account to measure grassroots adoption, the CSAO region dominates the world. Six of the top ten countries in the Global Crypto Adoption Index are in this region: India (1), Vietnam (3), Philippines (6), Indonesia (7), Pakistan (8) and Thailand (10).
Decentralized Finance (DeFi) has seen significant growth in CSAO, accounting for an estimated 55.8% of regional transaction volume between July 2022 and June 2023. This rate represents a significant increase compared to 35.2% of the previous year.
Institutional adoption in the region also appears to be increasing, with 68.8% of the total transaction volume consisting of transfers of $1 million or more. This rate increased compared to the rate of 57.6% in the previous period.
*This is not investment advice.