WazirX reports crypto trade worth $10 billion in 2022

Cryptos worth $10 billion were traded on WazirX between January and November 2022, according to a year-end report, released by the firm on Monday. WazirX said that the trade volume declined significantly due to the high taxes on virtual digital assets (VDA), yet 2.1 million new users signed up on the exchange during the year.  

Bitcoin (BTC), Tether (USDT), Shiba Inu (SHIB), WazirX (WRX), Ethereum (ETH), and Dogecoin (DOGE) were the most traded token on the exchange. Elon Musk’s takeover of Twitter and the FIFA World Cup 2022 drove demand for Dogecoin and ChiliZ (CHZ) tokens. After Musk completed the acquisition of Twitter in October, the trading volume of Dogecoin rose by 3,000%. Similarly, the trade volume of ChiliZ, which is the official token of a football fan portal Socios.com, grew by up to 63%, according to the report.  

Meme-based tokens such as Shiba Inu also remained in high demand especially among first-time investors, despite the crypto winter. The report shows that 27% of first-time investors purchased Shiba Inu.  

Many experts have predicted that interest in meme-based tokens is temporary and their value will depreciate soon.  

The report also found that women investors in the age group of 41 to 60 years traded more actively in cryptos than men. Also, women investors showed more interest in high-value tokens. Whereas, male investors showed interest in a wider range of cryptos and even bought meme tokens and gaming tokens, in addition to blue chip tokens. 

Bitcoin was the most popular crypto among men in the age group of 26 to 40 years, accounting for 49% of the trading volume. Among women investors, it was more popular in the age group of 41-60 years, accounting for 40% of the trading volume.

WazirX further noted that cryptos still face an uncertain future in India as there is no regulation to protect investor interests. It also observed that many investors pulled out due to high taxes on crypto transactions.

The government of India slapped a 30% tax on income from the transfer of virtual digital assets (VDA) as it looks to discourage users from investing in cryptos. After the tax was enforced in April, transaction volume on exchanges in India fell by 30% to 50%, according to CREBACO (Credit Rating for Exchanges, Blockchains, and Coin Offerings).