Indian Crypto Exchange market was valued at ~XX INR Crore in 2021, expanding at a CAGR of XX% in between FY’17 and FY’22 on the basis of revenue generated with massive expansion in the adoption of cryptocurrencies as the mode of investment due to rising industry valuation, an influx of new investors and the emergence of crypto exchange startups going beyond the typical crypto exchange model. The primary factors driving the market growth is the emergence of distributed ledger technology, rising traction in the area of digital investments by venture capitals and utilization of virtual currencies with integration of blockchain technology to attain decentralization, controlled, secured and efficient transactions. Cryptocurrency as a cross-border payment medium will make a big difference in the Indian market. Due to great remittance demand, it will drive the prosperity of digital currency growth in India for a long time. Since cross-border transactions traditionally carry high fee using bitcoin or other cryptocurrencies as a cross-border payment medium, Indians can save a large number of remittance fees. Surging adoption of cryptocurrencies post COVID-19 is also contributing in the growth of crypto exchange market by increasing their userbase.
In 2020, crypto exchange industry experienced a temporary downfall owing to the collaboration of confusion created by Indian government regarding the ban of cryptocurrencies by circulation of BCRODC Bill 2019 which made buyers skeptical fueled by Covid-19 in the beginning. Though the ban was lifted in March 2020 by Supreme Court, people were still in state of confusion about the current status of virtual currencies in India and with that spread of Covid-19 led to countrywide lockdown which was imposed in the mid-march, people became petrified to new circumstances and took time to adjust. During the initial stage of lockdown people started saving their assets to sail through the unforeseen condition which led to detachment from the crypto world. When lockdown continued for more than ten months people became accustomed to it and started looking ways for investments by end of 2020. A massive growth is seen in the year 2021 as cryptocurrency became an obvious choice of investment for a lot of users. Since they wanted to make money, and traditional businesses were suffering during covid. Covid that way, has helped the IT sector as well as the digital money aspect. Crypto jumped because of the money that flooded the markets, and the stimulus that was given to the economies due to shutdowns, which also lead to K-Shaped recovery.
Overview Of Indian Crypto Exchange Industry and Market Size
Several crypto exchange startups in India are gaining traction due to the growing appetite for underinvested crypto assets ranging from the most popular Bitcoin and Ethereum to not-so-familiar tokens like dogecoin, ripple, litecoin and more. CoinDCX became the first crypto unicorn in India valued at $1.1 Billion in 2021; it has integration with international exchanges such as Huobi, Binance. WazirX is leading crypto exchanges in India in terms of crypto transactions (24 hrs) and weekly visits. Crypto Exchange Platforms in India compete on the basis of user-friendly interface, easy and quick KYC norms, advertisement, wide range of investment options they offer and low transaction fees. One of the major competition parameters is the privacy protection, high liquidity, funding and service diversification such as wallet options, using virtual currencies as mode of payment for buying goods/services instead of fiat currency provided by the crypto exchange platforms to their users.
The ease of trading and user-friendly interface of Indian crypto exchange platforms which are built in accordance to the requirement of country resident attributes for the highest market share of domestic exchanges in India as compared to the international exchanges. However, in coming years despite the regulatory uncertainty and the speculated ban on cryptos in general, international crypto exchanges are eyeing a piece of the Indian crypto market, either through independent operations or through acquisitions. In essence, the crypto industry has a lot more potential to flourish across the country if its pain points can be resolved fast, paving the path for a robust, decentralized financial ecosystem. With the crypto exchanges and other companies coming together to lobby for clarity and regulation, India may soon witness the introduction of a new asset class and a decentralized innovation structure powered by crypto.
Indian Crypto Exchange Market Segmentation, Fy’22
By Origin of Company:
Domestic Crypto exchange companies accounted for the highest market share of XX% as compared to the international crypto exchange platforms on the basis of revenue generated in the year 2021. Attributed to the ease of trading through domestic platforms as compared to foreign companies where for trading direct monetary fund’s cannot be used.
By Geographic Region:
Southern and western region dominated the Indian crypto exchange market with a combined share of ~XX% on the basis of revenue contribution in 2021. Attributed to the high literacy rate in these regions resulting in aware, educated and tech savvy youth driving the crypto market
By Type of Transaction:
Regular method of transaction for cryptocurrencies accounts for the highest market share of XX% as compared to the peer-to-peer transaction in the year 2021. Regular mode of transaction is more preferred by the traders as they provide anonymity and privacy protection with safe and secure transaction
By Age Group of Users:
Indian who are most likely interested in trading and cryptocurrency market are aged between 20-40 years accounting for highest market share of XX% in 2021. With an easy access to internet, this tech savvy generation has started to take initiatives to have a strong understanding of cryptocurrency market and its benefits.
By Type of Cryptocurrency:
The Bitcoin has maximum dominance in the cryptocurrency market with highest market share of XX % & market capitalization XXXX INR Crore in 2021. Owing to the popularity of bitcoin among users and increased participation from women in bitcoin investments drives the dominance of bitcoin in 2021.
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Competitive Landscape of Indian Crypto Exchange Market, 2021
Indian Crypto Exchange market is concentrated among 12-15 players. Several crypto exchange startups in India are gaining traction due to the growing appetite for underinvested crypto assets ranging from the most popular Bitcoin and Ethereum to not-so-familiar tokens like dogecoin, ripple, litecoin and more. CoinDCX became the first crypto unicorn in India valued at $1.1 Billion in 2021; it has integration with international exchanges such as Huobi, Binance. WazirX is leading crypto exchanges in India in terms of crypto transactions (24 hrs) and weekly visits. Crypto Exchange Platforms in India compete on the basis of user-friendly interface, easy and quick KYC norms, advertisement, wide range of investment options they offer and low transaction fees. One of the major competition parameters is the privacy protection, high liquidity, funding and service diversification such as wallet options, using virtual currencies as mode of payment for buying goods/services instead of fiat currency provided by the crypto exchange platforms to their users.
The ease of trading and user-friendly interface of Indian crypto exchange platforms which are built in accordance to the requirement of country resident attributes for the highest market share of domestic exchanges in India as compared to the international exchanges. However, in coming years despite the regulatory uncertainty and the speculated ban on cryptos in general, international crypto exchanges are eyeing a piece of the Indian crypto market, either through independent operations or through acquisitions. In essence, the crypto industry has a lot more potential to flourish across the country if its pain points can be resolved fast, paving the path for a robust, decentralized financial ecosystem. With the crypto exchanges and other companies coming together to lobby for clarity and regulation, India may soon witness the introduction of a new asset class and a decentralized innovation structure powered by crypto.
For more information on the research report, refer to below link:
Investment Analysis of the Indian Crypto Exchange Market
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