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Cryptocurrency exchange WazirX on Wednesday said it has recorded 2,648 per cent growth in user sign-ups from Tier-II and -III cities of India.

Based on a report generated by payments gateway firm Razorpay, WazirX said Tier-II and -III cities have driven almost 55 percent of the total user sign-ups on its platform in 2021, thereby overtaking Tier-I cities that demonstrated a sign-up growth of 2,375 percent.

WazirX in a statement said the influx of cheaper and faster internet clubbed with continuously-lowered smartphone prices have led to rapid internet penetration in the semi-urban cities and rural towns of India.

“Coupled with the pandemic-induced lockdown, it has further accelerated the digital adoption in these regions.

“Moreover, it has also been the biggest driver of crypto adoption in India, as it has led to people trying to find new ways to earn online and diversify their portfolio,” the statement said.

The India-based exchange claims to have over over 7.3 million users, and has clocked over USD 21.8 billion in trading volume in 2021 till date.

Tier-II cities like Ahmedabad, Lucknow and Patna have reported an average growth of 2,950 per cent, whereas tier-III cities like Ranchi, Imphal and Mohali have reported an average growth of 2,455 per cent on WazirX, the statement said.

The Indian crypto industry has grown manifold since the lifting of the ban. A hub for digital innovation and startups for decades, India is all-embracing and forward-looking amidst the lack of regulatory clarity. The Chainalysis 2020 Geography of Cryptocurrency report ranked India 11th in the list of global crypto adoption, given its user base of 10 million crypto users trading in volumes reaching up to $350 million on a daily basis.

(Disclaimer: Additional background information has been added to this PTI copy for context)