cryptocurrencies: Crypto trading turnover more than halves since May as quick buck hunters vanish

New Delhi: Trading volumes at cryptocurrency exchanges have more than halved since the May selloff to levels last seen at the beginning of the calendar year. The euphoria over meme token Dogecoin also seems to be fizzling out, data suggest.

Since June, the average volume at WazirX stood at $2.4 billion, which was similar to the levels at the beginning of the year, said Siddharth

, COO, WazirX.

Data showed average volume at WazirX had spiked to an all time high of $6.2 billion in May from about $3.5 billion monthly volumes in January-April period.

The recent correction in the digital token market has wiped out the speculators and quick buck hunters, Menon of Wariz X said.

“Price volatility is a part of the financial market. We always recommend investing in education first and then allocate your portfolio into crypto starting with small amounts,” said Avinash Shekhar, Co-CEO at ZebPay. “Blockchain technology has great potential and we promote a long-term investment strategy,” he said.

Menon said, “It’s a high-risk, high-return form of investment. Sharp volatility and nascent age evacuate the speculators rapidly.”

According to Zebpay, the rate of withdrawal to the overall volume stood at 52 per cent in June and 51 per cent in May compared with 46.37 per cent in January.

It stood at 46.37 per cent in February and breached the 50 per cent mark in March.

The number of downloads and active users also declined after the May mayhem, but are stabilising gradually. The numbers had jumped sharply in the first five months of the ongoing calendar.

Dogecoin euphoria fizzles out

Bitcoin and Ethereum continue to be favourite tokens among the Indian crypto lovers, even as the euphoria over the meme token Dogecoin and other Altcoins has partially fizzled out.

“Matic, Ripple and Tron are the other key tokens, which are attracting the Indian users most,” said Shekhar of ZebPay.

Meanwhile, the cryptocurrency craze has spread to the Tier-II and Tier III cities in India and is not limited to big cities of Delhi, Mumbai or Bengaluru.

According to WazirX, 30 per cent of its trade comes from ities like Jaipur, Ahmedabad, Patna, Bhubaneswar, Indore and others. West Bengal, Uttar Pradesh and Haryana contribute about one third of the trade volumes on Zebpay’s platform.

Crypto investing is becoming mainstream with more people learning about it online and through other platforms. Growing interest and adoption has made various age groups and geographies curious about the new age investing.

This news is republished from another source. You can check the original article here

Be the first to comment

Leave a Reply

Your email address will not be published.


*