Indian Bitcoin Trading Apps Saw 60% Drop In Trading As Crypto Prices Fall

Over the past few months, we¡¯ve been seeing a crazy rise in the number of people investing in cryptocurrency as well as a sudden rise in crypto exchanges in India.

Reuters

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But off recently, this craze has tamed a little, with the value of Bitcoin dropping gradually, and this has been hitting Indian crypto exchanges.

Reported first by ETTech, WazirX, one of the largest bitcoin exchanges in India based on volume, saw a 60 percent drop in trading activity in the month of June compared to just a month earlier in May. A similar drop was seen by other crypto platforms in India like CoinDCX and Coinswitch Kuber.

To put things in perspective, trading volumes on WazirX crossed $6 billion in May, and ever since Supreme Court overturned RBI¡¯s ban on banks dealing with crypto platforms last year, sings up spiked by 1,800 percent on CoinSwitch Kuber, 700 percent on CoinDCX and 5,000 percent on WazirX. Even with trading volume dropping in June, WazirX¡¯s trading volume was at #2.5 billion compared to $101.9 million in June 2020.

Today, platforms are seeing a decline in new user sign-ups too, indicating that frequent traders are no longer active while long-term investors are holding their positions till things get better.

Also Read: India's 'CryptoKing' Arrested: Used Bitcoin To Score Drugs From The Dark Web

Using this opportunity in their favour

However, the platforms are now using this period of slack to actually improve and strengthen the stability of their existing systems, according to the executives of the platforms in a conversation with ET.

This is because when crypto was in its peak stage, most exchanges would be frequently down for maintenance due to the load, and not allowing users to make trades. This forced them to use their manpower and resources to increase the capacity in real-time and ignore other issues for the time.

Nischal Shetty, co-founder and CEO of WazirX stated that due to the immense volumes, they lacked the bandwidth to build anything new. However, now, with the little lower loads, they can work on improving as well as adding new features. They¡¯ve also hired over 100 people across tech, marketing and support.

Reuters

Also Read: Ether vs Bitcoin: Analysing The Crypto Market For An Indian Investor

Sharan Nair, the chief business officer of CoinSwitch Kuber is of the belief that bear markets like the one we¡¯re experiencing are also good for exchanges as it offers exchanges the ability to scale, build a robust system and launch new products. They¡¯re also working on strengthening tier security as well as initiatives to educate crypto holders to invest wisely and earn more from existing assets.