Indian Crypto Tree: New Traders Flood Exchanges – CEOs Reveal what drives massive growth
The Indian cryptography industry is experiencing enormous growth. New traders are flooding the crypto exchanges, managers of four of the largest crypto trading platforms in India told news.Bitcoin.com exclusively. They also share their views on what drives the Indian crypto market, the sentiment of today’s traders and the institutional interest in crypto in India.
Massive growth of new crypto traders, volumes
Cryptocurrency exchanges in India are seeing record numbers of new users signing up to their platforms, accompanied by huge increases in trading volumes.
At Unocoin, one of the oldest crypto exchanges in India, CEO Sathvik Vishwanath told news.Bitcoin.com last week: “Compared to the month of September, we now see about 2.5x the number of customers signing up for the service. He added that Unocoin has recently “expanded from brokerage to a full-fledged stock market.
At Wazirx, the number of new users has increased by 125% and the monthly growth in trading volumes has increased by 225%,” CEO Nischal Shetty revealed.
Bitbns CEO Gaurav Dahake sees a similar trend and shares that trading volumes on his exchange increased by 200% in the last quarter. In addition, “daily user registrations have increased by 800%” since the Indian Supreme Court lifted the bank restriction in March.
Meanwhile, Coindcx CEO Sumit Gupta said his stock market saw an overall annual growth of 235.82% in registrations compared to the previous year, adding that in the third quarter his platform “saw 4x growth in daily active users”.
What drives India’s Crypto Market…
The four CEOs were asked what drives India’s Crypto Market. Shetty told news.Bitcoin.com:
In March 2020, two major events took place that stimulated crypto adoption in India: the landmark Supreme Court verdict and the pandemic.
He stated that “several Indians have lost their jobs, and this has led them to invest in cryptocurrency to earn extra income by becoming traders, technical analysts or crypto influencers”.
Gupta explained that ‘the national interest and curiosity in cryptocurrency [are] at a new peak in the fourth quarter’. He recalled that “the gradual shift began at the beginning of the rural lockdown,” caused by the Covid-19 pandemic, which gave people back home more time to explore the crypto business. The Supreme Court lifting the bank restriction also gave “newcomers confidence e”.nter the cryptocurrency market,” resulting in “an increasing number of user reports and volumes.”
Dahake shared a list of key factors feeding the growth of India’s crypto market, consisting of bitcoin’s “price, retail participation increase, stock exchanges spending more marketing dollars … and media attention around it.”
Indian Trader sentiment ‘Strongly Positive’…
The CEOs share a similar vision when it comes to the sentiment of traders in India. “We are seeing a change in investor and trader sentiment,” Gupta explained to news.Bitcoin.com, citing several educational initiatives, including some of his own stock market. “More traders are doing extensive research (technical and fundamental) before making investments and trading decisions in crypto circles”. According to him:
There’s been a seismic shift in investor and trader mentality in recent years.
“What I see is that people are now becoming acquainted with crypto,” Shetty details, and emphasizes that “bitcoin is a digital asset that is not limited to a country, or entity, but is available to everyone around the world. Most people you see would actually like to have bitcoin in their wallets because it’s a future asset”. In addition, he noted that the price of bitcoin is skyrocketing.
Dahake described the Indian trader’s sentiment as “Strongly positive.” He advises most new users to start with dollar-cost average (DCA) bitcoin instead of trading directly in cryptocurrencies, noting that his exchange offers a service for this one called Bitdroplet.
The executives also agree that positive crypto news from around the world, such as Paypal’s new crypto services, do have an impact on the Indian market.
Growing institutional interest
While institutional investors are increasingly interested in cryptocurrency in countries such as the US, the four CEOs agree that there is still little institutional interest in crypto in India.
The institutional interest “is quite low, but is now growing,” Dahake noted. “Custody remains the biggest problem with institutional adoption. Until players like Fidelity and others who are great in traditional finance, start providing that in India, that would not explode.” In comparison, he described:
Retail is growing very fast, because Indian stock markets are very low.
Gupta noted a similar trend and confirmed that “at the moment the interest and demand among Indians is pure retail,” but added that he believes that “in the coming years we may see similar institutional investors in India”.
Shetty, who shares the sentiment, agreed that institutional participation “is very low in India in crypto”, and said that “regulatory uncertainty is the biggest obstacle”. He stressed, “institutional players need regulatory clarity before participating in a new asset class such as crypto”.
Vishwanath clarified that Unocoin’s recently launched stock exchange “is designed to serve both retail and institutional investors,” he concluded:
We’ve seen in the past that India is following a trend similar to developed countries that are lagging several quarters behind. So this has caused many institutions to start thinking about crypto in their balance sheets, but they still have to jump on the punching line.
What do you think about how fast the Indian crypto industry is growing? Let us know in the comment section below.
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Published on Thu, 10 Dec 2020 10:15:07 +0000