Trading volume of major cryptocurrencies like WazirX dropped by more than 97 per cent in 2022.
Trading volume of most Indian crypto exchanges such as WazirX, CoinDCX, ZebPay, and Bitbns, plummeted over 97 per cent in 2022. Data from crypto research firm CREBACO, accessed by Outlook Money, showed WazirX’s trading volume fell 97.99 per cent between January and December 22, 2022. CoinDCX’s fell 88 per cent, Bitbns declined 67 per cent, and ZebPay fell 94 per cent in the same period.
Crypto Market Performance
Cryptocurrencies such as Terra/Luna and FTX collapsed in 2022, sending shockwaves across the industry. The market lost more than $2 trillion from its all-time high in November 2021.
"These events occurred throughout the year. Some investors declared they are done with cryptos, while others who know these fluctuations are normal, are looking forward to more investments next year," says Kumar Gaurav, founder & CEO of Cashaa, a crypto-friendly neo bank.
Several factors have may have dampened the market sentiments; rising interest rates, Ukraine war, the collapse of crypto exchanges like Terra Luna, 3 Arrows Capital, BlockFi, FTX, and Celsius.
"The year ended with the RBI dipping its toes into crypto with the launch of CBDC pilots. WazirX processed approximately 46 billion dollars in transactions last year; volumes are around 10 billion dollars this year. The 1% TDS has shifted all volumes from Indian exchanges to foreign exchanges," says Rajagopal Menon, vice president of WazirX.
What To Expect In 2023?
The industry expects more businesses and institutions will embrace blockchain technology in 2023. "We anticipate more government regulations and adoption of crypto assets by traditional financial institutions. This will give legitimacy to the industry and make the technology more accessible to the masses," says Sakina Arsiwala, Co-Founder of Taki, a crypto platform.
"As we move into 2023, investors should be aware that the current macro environment, lack of regulation and confidence in crypto, and unclear regulatory frameworks will continue to pressure crypto," says Amanjot Malhotra, country head of Bitay, a crypto platform.
"It is important for all investors to review their crypto portfolios and their investment thesis behind crypto allocations and set a plan for proper crypto investment moving forward," added Malhotra.