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India Leads Grassroot Level Global Crypto Adoption Index: Chainalysis

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  • India leads in global grassroots crypto adoption, surpassing countries with higher trading and mining activities, securing 2nd place in raw value received.
  • Global crypto adoption has declined over the last 2 years, but India’s adoption remains robust despite regulatory challenges.
  • Indian investors face high taxes, encouraging offshore exchange usage, and stablecoins gain popularity in Pakistan due to economic instability.

Global Crypto Adoption Index Recently Published by Chainalysis

India has claimed the top rank in grassroots cryptocurrency adoption, according to the 2023 Global Crypto Adoption Index recently published by blockchain analytics platform Chainalysis. This indicator, which appears in Chainalysis’ yearly ‘Geography of Cryptocurrency’ report, evaluates cryptocurrency acceptance among the broader population rather than just transaction volumes.

Share of Web Traffic

 

Majority Of India’s Crypto Traffic Goes To Centralized Exchanges 

In this indicator, India ranked higher than other countries with significant amounts of bitcoin trading and mining activity. Furthermore, when the top countries were examined based on the raw estimated cryptocurrency value received between July 2022 and June 2023, India came in second place. 

According to the Chainanalysis research, India got approximately $250 billion in cryptocurrency value over the past year, trailing only the United States, which received approximately $1 trillion in cryptocurrency value during the same period.

India ranked first in the overall index ranking, second in the centralized service value received ranking, third in the retail centralized service value received ranking, and fifth in the P2P exchange trade volume rating. Nigeria, Vietnam, the United States, Ukraine, the Philippines, and Indonesia follow India. 

Global Crypto Index

 

How Chainalysis Calculated Crypto Adoption?

Chainalysis estimates transaction volumes for various types of cryptocurrency services and protocols to measure global cryptocurrency adoption. This volume is computed using regional traffic on websites that offer crypto services and protocols. Despite the fact that online traffic is not a good measure of total crypto usage, it allows Chainalysis to add layers to the overall trustworthiness of its data, which is further supported by trends documented in millions of online 3 transactions.

Chainalysis also works with local cryptocurrency specialists and operators around the world, according to the official report. This consultation process adds assurance and validity to their methodology for assessing worldwide cryptocurrency adoption.

Read Also: India Undertakes Cyber Police Training To Tackle Crypto Crimes

Global Adoption Declines While India Moves Ahead

According to the survey, worldwide crypto use in the country has decreased dramatically over the last two years. After reaching an all-time high in Q1 2021, crypto usage continued to fall, reaching its lowest point in the fourth quarter of FY2023. Despite slight advances in adoption rates over the last two quarters, it could not get any closer to the old numbers. 

Despite the prevalence of acute FOMO in the business as a result of rising fears of a worldwide recession, crypto adoption in India has continued to expand. This finding from the Chainalysis analysis may come as a surprise to many, given that the Indian government already taxes domestic investors left, right, and center. 

Crypto Value

 

However, this could also be due to Indian investors’ lack of exposure to the major crypto losses of 2022, such as the huge FTX collapse. According to the graph below, Chainalysis studies show that lower middle income countries, including India, improved significantly after Q2 2022 and were able to maintain the levels until Q2 2023. 

On the other side, high-income countries such as the United States and other European countries have seen a reduction. According to the research, institutional adoption in the region appears to have increased, with transactions valued at $1 million or more accounting for 68.8% of total transaction volume, up from 57.6% in the previous time period. 

Despite tax law uncertainties, there has been an unprecedented surge in transaction volume.

According to the Chainalysis analysis, India has surpassed some of the world’s richer countries to become the second largest crypto market. 

Unprecedented Increase In Transaction Volume Despite Ambiguity In Tax Laws

According to the research, “India leads the world in grassroots adoption…but perhaps even more impressively has become the second-largest crypto market in the world by raw estimated transaction volume, beating out several wealthier nations.” 

According to the report, “India taxes cryptocurrency activity at a much higher rate than most other countries, with a 30% tax on gains — a rate unique to crypto Central & Southern Asia and Oceania 56 and higher than the country’s tax rate on other investments such as equities.”

Along with that, Indian consumers must pay an additional 1% tax on all transactions when using Indian centralized exchanges, which may be one of the reasons why Indian investors prefer offshore exchanges to save that 1% fee on every transaction. 

The data above shows the gradual increase in traffic from Indian IP addresses on foreign exchanges, indicating that more Indian users are visiting international exchanges and performing transactions. 

The survey also emphasizes the appeal of stablecoins in Pakistan due to the country’s very volatile economy. In Pakistan, stablecoins are utilized as a hedge against the country’s constantly failing native currency and unpredictable inflation. 

Conclusion

As stakeholders in the cryptocurrency business ask the Indian government to adopt comprehensive cryptocurrency rules, they highlight the potential benefits for entrepreneurs and investors. 

Despite the government’s reservations about the growing nature of finance, crypto usage in India is increasing on a daily basis, paving the way for the establishment of comprehensive and industry-centric legislation in the future. 

Disclaimer: The information provided is not trading advice. Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.



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Cryptocurrency Market Update: Bitcoin Slips Below $70,000 Amidst High Liquidation

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In a swift turn of events, Bitcoin (BTC), the pioneering cryptocurrency, dropped below the $70,000 threshold early on Wednesday following a wave of investor sell-offs. Just a day prior, Bitcoin had crossed the $71,000 mark, but market sentiment swiftly shifted, dragging other major altcoins—including Ethereum (ETH), Dogecoin (DOGE), Ripple (XRP), Solana (SOL), and Litecoin (LTC)—into the red zone.

According to CoinMarketCap data, the overall Market Fear & Greed Index stood at 75 (Greed) out of 100, indicating a mix of optimism and apprehension among traders. Notably, the Bittensor (TAO) token emerged as the top gainer with a remarkable 24-hour surge of over 7 percent, while dogwifhat (WIF) experienced the largest loss, plummeting nearly 16 percent.

Bitcoin (BTC) Price Update Bitcoin’s price tumbled to $69,089.01, marking a 24-hour dip of 3.05 percent, as reported by CoinMarketCap. On the Indian exchange WazirX, BTC was priced at Rs 60.93 lakh.

Other Major Cryptocurrencies Ethereum (ETH) saw a 24-hour loss of 4.81 percent, trading at $3,508.86, while Dogecoin (DOGE) registered a dip of 5.59 percent, currently priced at $0.1879. Litecoin (LTC) and Ripple (XRP) also experienced losses, with Solana (SOL) marking a 24-hour loss of 3.44 percent.

Top Gainers and Losers Bittensor (TAO) led the pack of gainers with a 7.30 percent surge, while dogwifhat (WIF) suffered the most significant loss, dropping by 15.58 percent.

Market Analysis and Expert Insights Experts weighed in on the market scenario, attributing Bitcoin’s downturn to heightened liquidations and cautious sentiment ahead of the upcoming US CPI data release. While Bitcoin’s immediate support rests at $67,700, resistance is expected at $70,400. Ethereum proponents face challenges amid hopes for an ETF approval, with the SEC providing limited updates on the matter.

Final Thoughts The cryptocurrency market remains highly dynamic, with prices fluctuating rapidly and investor sentiment playing a pivotal role. As the market navigates through volatility, it’s essential for investors to stay informed, exercise caution, and seek expert advice before making any investment decisions.

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Cryptocurrency: A Scapegoat for Foreign Policy Failures?

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Cryptocurrency has once again found itself at the center of a heated debate, this time regarding its alleged role in facilitating illicit activities and circumventing sanctions imposed by the United States. The Biden administration, in particular, has come under scrutiny for its handling of the issue, with some accusing it of using digital assets as a convenient scapegoat for broader foreign policy shortcomings.

In a recent hearing before the Senate Banking Committee, Deputy Treasury Secretary Wally Adeyemo raised concerns about the misuse of cryptocurrencies by foreign adversaries such as Iran, Russia, North Korea, and militant groups like Hamas. Adeyemo’s remarks underscored a growing unease within the U.S. government regarding the potential national security implications of unregulated digital currencies.

However, voices from within the cryptocurrency industry and Congress have pushed back against the administration’s narrative. Faryar Shirzad, Chief Policy Officer at Coinbase, one of the leading cryptocurrency exchanges, pointed out that the prevalence of illicit activity in the crypto space is relatively low compared to traditional finance. Instead of demonizing cryptocurrencies, Shirzad argued, the focus should be on targeting bad actors operating offshore.

Senator Tim Scott, the ranking Republican on the Senate Banking Committee, echoed these sentiments, accusing the Biden administration of using digital assets as a distraction from its failure to effectively combat financial flows to sanctioned entities. Scott’s criticism reflects broader skepticism among some lawmakers about the government’s approach to regulating cryptocurrencies.

One area of potential agreement between the Biden administration and the cryptocurrency industry is the need for clearer regulations governing stablecoins, a type of digital asset pegged to a fiat currency like the U.S. dollar. Both sides recognize the importance of addressing the potential risks associated with stablecoin issuance and usage, particularly in the context of national security and financial stability.

The debate over stablecoins has intensified following reports of their alleged role in facilitating illicit transactions, including those linked to Russia’s war effort in Ukraine. The Treasury Department has called for increased oversight of stablecoin issuers and transactions, while also advocating for legislation that would subject them to stricter regulatory standards.

Despite the contentious nature of the discussion, there are signs of bipartisan cooperation on certain aspects of cryptocurrency regulation. A bipartisan bill addressing stablecoin regulation passed the House Financial Services Committee last year, signaling a potential path forward for legislative action in this area.

As the debate over cryptocurrency regulation continues to unfold, it is clear that finding the right balance between innovation and security will be paramount. While concerns about illicit activity and national security must be addressed, policymakers must also recognize the potential benefits of cryptocurrencies in fostering financial inclusion and technological advancement.

Ultimately, the resolution of these issues will require thoughtful collaboration between government officials, industry stakeholders, and lawmakers to develop a regulatory framework that promotes innovation while safeguarding against misuse. Only through constructive dialogue and cooperation can we ensure that cryptocurrencies fulfill their potential as a force for positive change in the global economy.

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Bitcoin Resurgence: Why Wall Street Is Embracing the Crypto Revolution

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Andrew Pratt of Wiser Wealth Management in Marietta, Ga., finds little resistance as he proposes Bitcoin investments to his firm’s committee. With Bitcoin surging 140% in the past year and backed by giants like BlackRock, skepticism has waned. Pratt sees the potential to allocate a modest 1% of client portfolios to Bitcoin, acknowledging the limited downside risk compared to potential gains.

The debate over Bitcoin’s intrinsic value seems to have lost its relevance amidst its soaring market performance. Once dismissed, Bitcoin now boasts a market value of $1.3 trillion, driving the total crypto market to $2.5 trillion. Wall Street, once wary, now views cryptocurrency as an opportunity for profit rather than a speculative venture.

Despite lingering doubts about Bitcoin’s utility beyond speculation, Wall Street executives are increasingly supportive. BlackRock’s CEO, Larry Fink, notably reversed his stance, endorsing Bitcoin’s long-term prospects and championing the iShares Bitcoin Trust, now one of the largest Bitcoin ETFs with nearly $18 billion in assets.

While skepticism persists about Bitcoin’s status as a real asset or currency, its growing acceptance on Wall Street underscores the evolving landscape of finance. As institutions embrace cryptocurrencies, Bitcoin’s journey from pariah to portfolio asset highlights the transformative power of digital assets in reshaping traditional investment strategies.

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