According to reports, residents of India are embracing cryptocurrency usage and trading as a method of investing. Therefore, obtaining more money in the aftermath of the Covid-19 pandemic. What’s more fascinating is that this rise is even more pronounced in small towns. Where interest in cryptocurrencies is said to be at an all-time high.
WazirX Reports
WazirX, a local exchange, reported an influx of new clients from these minor cities classed as tier-2 and tier-3 cities. Users from these cities have increased by 2,648%, according to the exchange. Nischal Shetty, the CEO of WazirX, told the India Times:
Tier-2 and tier-3 cities have driven almost 55% of total user sign-ups on WazirX in 2021. Therefore, overtaking tier-1 cities, which demonstrated a sign-up growth of 2,375%.
Investor Profile Changing in India
The average cryptocurrency investor’s profile is altering due to the new entry of people into the crypto ecosystem in India. The majority of the fresh blood is under 35 years old and possesses a college diploma. According to local exchange reports, more than 90% of new investors are IT experts, MBA grads, engineers, and startup founders.
This has helped to diversify the investing patterns found in the crypto markets of today’s India. These new traders are more likely to switch from ethereum and bitcoin to new technologies like decentralised finance (defi) and network financial technologies (NFTs). Some exchanges, who already have native markets, are pushing aggressively for NFTs to earn from buys and sales of these instruments.
According to WazirX’s CEO, they have sold over $108K in NFTs on their local market. This may not seem like much, but it is still a growing market. Even with all of the legislative issues surrounding cryptocurrencies and the legality of digital assets in the nation, exchanges are thriving with activity. Because of the increased demand for cryptocurrency, exchanges have begun to provide new goods, such as peer-to-peer (P2P) marketplaces, to circumvent regulatory monitoring.
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