Indian crypto exchanges aren’t worried about the lull in trading volumes — they see it as an opportunity

• A bear market in the crypto sector is time for innovation, increasing capacities and building new products for Indian crypto players.
• The global lull has resulted in trading volumes dropping by at least 50% on exchanges like WazirX, CoinSwitch Kuber and CoinDCX.
• CoinSwitch Kuber CEO, Ashish Singhal, told Business Insider that the crypto maket’s volatility is just a part of market building.

The slowdown in the crypto market over the past couple of months has given crypto exchanges, especially in India, a chance to take stock of their services.

“Bear market brings in an opportunity for us to further strengthen security and work on building educational initiatives to bring more awareness around crypto as an asset class,” Ashish Singhal, CEO and co-founder of CoinSwitch Kuber told Business Insider. “Volatility is just a part of market building. We are hopeful that the market will see a steady recovery.”

With regulatory troubles, overwhelming trading volumes and more, exchanges have all hands on deck. But with the pressure easing now, they are looking to build capacities for when the next big boom in crypto happens.


The crypto bear market is a global phenomenon
Globally, the ratio of Bitcoin held on exchanges in comparison to the total number of coins in circulation has fallen to 13% in July — the lowest level in 6 months — according to data from crypto analytics group Santiment.

Similarly, the amount of Ether held on exchanges as a percentage of total supply fell to just 18% in June.


Meanwhile in India, the trading volume within most Indian exchanges has more than halved since the peaks of April and May, when Bitcoin and other cryptocurrencies were on a bull run.

Fall in trading volumes likely means that more people are HODL’ing
A fall in the amount of cryptocurrency held on exchanges isn’t necessarily a ‘bad’ thing. In fact, it suggests that more people are buying tokens and holding them in their own private wallets — off the exchange — which means there is less scope for a big sell-off.

"Consolidation is widely considered to be a sign of the crypto markets maturing with more investors adopting a longer-term approach towards crypto assets,” Gupta told Business Insider.

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