India now has one of the largest Web3 ecosystems in the world, with more than 1,000 startups and over 35 million traders, a new report showed on Tuesday.

The country’s share of Blockchain developers globally increased from 3 per cent in 2018 to 12 per cent last year, reaching highest share among the emerging markets, according to the report by Hashed Emergent, a Web3 venture capital firm.

“The findings underscore India’s remarkable ascent in Web3 adoption and shows that it is on a trajectory to become the global leader,” said Tak Lee, CEO and Managing Partner of Hashed Emergent.

“We believe the regulatory environment is evolving slowly in the right direction, and further positive regulatory developments are required to fuel growth,” Lee added.

India reached the top spot for on-chain adoption last year among more than 150 countries.

“Blockchains have enabled various innovative use cases such as DeFi, real world assets tokenisation, self-sovereign identities, track and trace etc. which were not possible earlier,” said Krishna Tyagi, Head of Web3 at KPMG in India.

In India, there has been an increase in funding of startups in Web3 subsectors of finance, entertainment and infrastructure.