Cryptocurrency trading volumes within India have soared since the Supreme Court of India lifted banking restrictions for exchanges earlier in March.
In line with Coin Dance’s Paxful and LocalBitcoins volume data, India’s bitcoin P2P trade volume reached an all-time high earlier in the month of July.
The CEO of Marlin, Siddhartha Dutta, a tech startup in Bangalore, revealed that the recent spike in demand for bitcoin mirrors Indians’ reaction to demonetization in 2016. Some time past some people learned the worth of holding bitcoin, whose issuance isn’t managed by any regulatory authorities, when the Indian govt recalled a huge percentage of paper money.
The old bills suddenly lost value due to a government decree. The idea that bitcoin’s value is predicated on market principles, rather than fickle govt policies, made it particularly more attractive.
The price of bitcoin on Zebpay, an Indian cryptocurrency exchange, had surged from $757 USD to $1,020 USD in within just 18 days after demonetization, while the Bitcoin [BTC] price within the United States remained relatively static. For a few Indian investors, investing in bitcoin was a secure choice to store their wealth and minimize the uncertainties caused by demonetization and a possible gold ban.
India’s growing cryptocurrency market dramatically slowed earlier in 2018, when the RBI ordered financial institutions to avoid working with cryptocurrency exchanges.
Now, the lifting of banking restrictions appears to possess unleashed pent-up demand for cryptocurrency, which no government can declare worthless. Lately Bitcoin [BTC] activity is ramping up across India on P2P exchanges like Paxful and LocalBitcoins.
As the chart below shows, India’s P2P bitcoin transaction volumes have doubled over the period of past few 5 months.
In line with a spokeswoman for Paxful, one among the leading p2p trading platforms, India is now among the 5 rapidly growing bitcoin user groups within the world. Paxful’s Indian volumes surged from around $576k earlier in May last year to $8.97 Mln in July this year, and the total p2p Indian volumes on Paxful and LocalBitcoins reached $13.7 Mlnn. Smaller exchanges serving the Indian market, like Delta Exchange, are also seeing rapid climb. Delta Exchange CEO Pankaj Balani said new signups are growing 100% month-over-month.