Experts assert that the demand for cryptocurrencies is booming and the untapped market potential is vast.

“While there is no official data on the number of crypto investors in India, exchanges like WazirX estimate that 7-8 million investors are holding over $1 billion in crypto investments. Industry estimates suggest a potential investor base of upwards of 100 million. The sheer size of the Indian market makes it an attractive option,” said Nicklas Nilsson, senior analyst at GlobalData.

Why Coinbase and Binance invested in India

Besides the huge growth potential, what is driving investments into India is the huge cash reserves that global crypto exchanges hold.

Rising revenues and investor financing mean that global giants are flush with cash, which they are using to expand into newer markets and take advantage of various trends in the cryptocurrency space.

“Cash-rich crypto platforms are capitalising on the rising buzz surrounding cryptocurrencies, stable coins, decentralized finance, non-fungible tokens, and more. The shopping spree by the large crypto exchanges is fueled by the eye-popping run for bitcoin and the wider crypto universe. Along with this, there is a desire, and ability, to improve its underlying infrastructure,” said Nilsson, adding that this will continue in 2021.

So it seems whether the Narendra Modi government can make up its mind about crypto or not, the global crypto ecosystem is willing to commit to a long-term relationship with their Indian peers.

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