Amid the sustained cryptocurrency bull run in 2021, Indian crypto exchanges are recording a spike in day traders in comparison with the 2017 rally.
The buyers partly make up 105 million Indians who maintain various crypto assets, with the variety of traders surpassing one million.
“We’ve got a daily trader base of over 80,000 Indian high-frequency traders, which was around 20,000-25,000 through the bull run of 2017-2018. Day merchants tend to lean in the direction of high-volatility assets, together with new and upcoming projects with wild actions that they try to capitalize on,” said Shivam Thakral, CEO, BuyUcoin, a cryptocurrency exchange.
The surge in day traders has additionally translated into the trading volume. WazirX, an exchange with 10 million users, has recorded a volume of $36 billion in 2021. Moreover, the exchange’s variety of new users has elevated ten-fold.
Related: The Shiba Inu wave takes WazirX by storm; the company records its highest daily volume ever
Pandemic drives crypto investments
The surge in day traders emerged in 2021 amid the coronavirus pandemic that was characterized by lockdowns. Most individuals opted for crypto investments in their free time because the sector embarked on a rally from the third quarter of the last year.
Amid the pandemic’s initiated financial turmoil, digital assets additionally emerged as a hedge. Moreover, cryptocurrencies in India are considered to have an analogous appeal to mutual funds.
AS we previously reported, Indian millennials are also increasingly preferring digital assets instead of traditional investment means like inventory buying and selling. On the identical time, information from cryptocurrency exchanges indicates that buyers from the smaller cities are more and more buying Bitcoin and other digital assets.