The trading volume of major crypto exchanges such as WazirX fell by more than 97% in 2022

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The trading volume of most Indian crypto exchanges such as WazirX, CoinDCX, ZebPay and Bitbns, fell by more than 97% in 2022. Data from crypto research firm CREBACO, viewed by Outlook Money, showed that the WazirX’s trading volume had dropped 97.99% between January and December. 22 2022. CoinDCX fell 88%, Bitbns fell 67%, and ZebPay fell 94% over the same period.

Crypto market performance

Cryptocurrencies such as Terra/Luna and FTX crashed in 2022, sending shockwaves through the industry. The market has lost over $2 trillion from its all-time high in November 2021.

“These events have been happening throughout the year. Some investors have said they are done with cryptos, while others who know these fluctuations are normal are looking forward to other investments the next year,” said Kumar Gaurav, founder and CEO of crypto-friendly Cashaa. neo bank.

Several factors may have dampened market sentiment; rising interest rates, war in Ukraine, crashing 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 the CBDC pilots. WazirX processed around $46 billion in transactions last year; volumes are around $10 billion this The 1% TDS has shifted all volumes from Indian exchanges to foreign exchanges,” says Rajagopal Menon, VP of WazirX.

What to expect in 2023?

The industry expects more companies and institutions to adopt blockchain technology in 2023. “We anticipate more government regulations and the adoption of crypto assets by traditional financial institutions. This will give legitimacy to industry and will make the technology more accessible to the masses,” says Sakina. Arsiwala, co-founder of Taki, a crypto platform.

“As we enter 2023, investors should be aware that the current macro environment, lack of regulation and confidence in crypto, and unclear regulatory frameworks will continue to put pressure on crypto,” says Amanjot Malhotra, country manager of Bitay, a crypto platform.

“It is important for all investors to review their crypto portfolios and their investment thesis behind crypto allocations and establish a plan for proper crypto investing in the future,” added Malhotra.

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