India Is The World’s Second-Largest Cryptocurrency Market: Report

• According to Chainalysis, India has become the world’s second-largest cryptocurrency market.
• India received approximately $268.9 billion in crypto assets between July 2022 and June 2023.
• DeFi accounted for 55.8% of CSAO’s regional transaction volume.

According to a report by Chainalysis, a blockchain analysis firm headquartered in New York, India has become the world’s second-largest cryptocurrency market. Chainalysis based its report on raw transaction volume and shows that Central and Southern Asia and Oceania (CSAO) hosts arguably the world’s most fascinating and dynamic cryptocurrency market.

Chainalysis’ report shows that, by regional analysis, CSAO is the third-largest cryptocurrency market, accounting for nearly 20% of global crypto activity. In exact figures, CSAO claimed 19.3% of the global raw crypto transaction volume, while the rest of the world retained 80.7%.

The report, an excerpt from the yet-to-be-released “2023 Geography of Cryptocurrency Report” by Chainalysis, noted that India leads the CSAO transaction volume by a significant mile. It shows India received an estimated $268.9 billion in crypto assets between July 2022 and June 2023.

The Chainalysis report narrowed its focus to purchasing power and population when measuring grassroots crypto adoption. Using these metrics, the CSAO showed clear dominance, with six of the top ten countries in this category located in the region. Among them are India (1), Vietnam (3), the Philippines (6), Indonesia (7), Pakistan (8), and Thailand (10).

According to Chainalysis’ report, there has been a spike in decentralized finance (DeFi) transactions in CSAO. DeFi accounted for 55.8% of CSAO’s regional transaction volume. This is a significant increase from the 35.2% recorded in the previous year-long period. Moreover, the report showed an increase in the number of transactions done by institutional investors. According to the report, 68.8% of the total transaction volume during the period under review was over $1 million. That is a significant increase from the 57.6% recorded in the preceding period.

Chainalysis observed a high level of dynamism in the CSAO crypto adoption model. The analysis firm noted a variation in the usage of different crypto services. However, it showed that centralized exchanges remain in the lead in user traffic, consistent with the metrics from other parts of the world.