Cryptocurrency Is Picking up Steam in Small Cities in India: Report
Cryptocurrency usage and trading are experiencing a boom in India, and most of this growth is coming from small cities. According to reports from local exchanges, the growth has been exponential. The profile of these new participants has also been interesting, as they are highly educated, not only focused just on bitcoin, and are open to diversifying their portfolios with more exotic offerings.
Crypto Grows in India’s Small Cities
Cryptocurrency usage and trading are being embraced by Indian citizens as a way of investing and gaining additional money after the Covid-19 pandemic, according to reports from regional media outlets. But what’s more interesting is that this growth is even bigger in small cities, where interest in cryptocurrency is reportedly peaking.
A local exchange, Wazirx, reported amazing levels of new customers coming from these small cities, that are classified as tier-2 and tier-3 cities. The exchange reported users signups from these cities have grown by 2,648%. Wazirx CEO, Nischal Shetty, told the India Times that:
Tier-2 and tier-3 cities have driven almost 55% of total user sign-ups on Wazirx in 2021, thereby overtaking tier-1 cities, which demonstrated a sign-up growth of 2,375%.
The locations of new users are changing, alongside the profiles of new crypto investors.
Investor Profile Changing in India
This new influx of people to the crypto environment in India is changing the profile of the average cryptocurrency investor. Most of the new blood is less than 35 years of age and has some type of degree. Reports from local exchanges confirm that more than 90% of the new investors are IT professionals, MBA graduates, engineers, and startup owners.
This has contributed to the diversification of investments patterns seen today in Indian crypto markets. These new traders are more inclined to move from investments like ethereum and bitcoin to new technologies like decentralized finance (defi) and NFTs. NFTs are being pushed hard by some exchanges, that already feature native markets to profit from purchases and sales of these instruments.
Wazirx’s CEO stated that they have sold over $108K in NFTs using their native market. This might not seem like much, but it is a market that is still growing. Exchanges are booming with activity, even with all the regulatory woes that the country has faced regarding cryptocurrencies and the legality of digital assets in the country. This growth in the demand for crypto has moved exchanges to offer new products, including peer-to-peer (P2P) markets, to avoid the oversight of regulators.
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