Cryptocurrency adoption in India increases by 641% in 2020 : Chainalysis report

India, Vietnam and Pakistan are the leading adopters of cryptocurrency in the South Asian and Central Asian markets

October 5, 2021

Entrepreneurial and Venture Capital spaces are among the two leading spaces of cryptocurrency adoption.

Large-sized institutions in India facilitated digital currency transactions to the effect of US$10 in 2020.

The millennial demographic is ushering in a change in national investment patterns from gold to cryptocurrency.

The valuations of digital currencies including Ether, Bitcoin, Solana and Ethereum have increased in 2020.

According to a report by blockchain data platform Chainalysis, India’s cryptocurrency markets grew by 641% in 2020 with decentralized finance (DeFi) platforms taking a 59% share. In the South Asian and Central Asian markets, India, Pakistan and Vietnam are leading the growth of cryptocurrency. The digital currency has gained traction in the venture capital and entrepreneurial spaces as more than US$10 million have been facilitated by larger institutions. 

With a potential cryptocurrency regulation in sight, India’s young investors are ushering in a shift in investment from real estate and gold towards cryptocurrency. The pandemic has facilitated an increase in cryptocurrency investment and has bolstered the rise of currencies including Ether, Bitcoin, Solana and Ethereum since April 2020. Growth in the fintech sector and retail spaces as well as increased adoption of digital payments platforms are expected to boost the growth of digital currencies. Unocoin, one of India’s largest cryptocurrency traders, allowed users to recharge their Fastag accounts through Bitcoin. As a result, transactions amounting to US$10,737 – US$13,421 were facilitated earlier in August this year with the 35+ demographic leading the way. E-commerce platforms and select restaurants allow for cryptocurrency transactions in India.

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