According to experts, Meme Coins, central bank digital currency, metaverse and non-fungible tokens (NFTs) were the four major trends of 2021.
Hitesh Malviya, Founder, Blockchain and Cryptocurrency publication, its Blockchain.com believes that 2021 will be remembered as the year of mainstream cryptocurrency adoption. “In this year, India added over 90% of its existing retail investor size. Meme coins dominated the first half of the year when Dogecoin pulled off a massive price rally. Shiba Inu and some other meme coins also followed Dogecoin’s rise in the latter part of the year,” Malviya said.
According to Indian crypto exchanges like CoinDCX, BuyUcoin and WazirX, Bitcoin, Ethereum, Tether, Shiba Inu, Dogecoin, WazirX Token, Matic, Ripple, Cardano and Solana were among the most traded crypto coins during the year.
However, most of the trading volume was dominated by top coins. Bitcoin was the most traded crypto on its platform in 2021, according to WazirX’s analysis of its database. Interestingly, on WazirX, women traded more in bitcoin, while men traded more in Shiba Inu.
Furthermore, an analysis of investment patterns by BuyUcoin revealed that each 100 invested on their platform, 50 went to bitcoins, 35 in Ethereum, Go to 10 Shiba Inu or Dogecoin, and rest among other coins. Interestingly, the most held crypto coin on BuyUcoin was Ethereum with an above average investment 40,000.
CoinDCX CEO and Co-Founder Sumit Gupta believes that Indian users have always believed in low-risk investment options. “The same is reflected in their crypto investments. Domestic investors mostly invest in major tokens such as bitcoin and ethereum, which account for the largest share of the market cap. Some other altcoins such as Dogecoin and Shiba Inu also attracted Indian investors on various occasions. done,” Gupta said.
Cryptocurrencies have seen a sharp rise in interest since the Reserve Bank of India (RBI) lifted the ban in March 2020, with Indian exchanges seeing impressive user additions and a steady increase in daily trading volumes.
WazirX saw a record trading volume of over $43 billion in 2021 – the highest in India – accounting for an increase of 1,735% over 2020.
According to a survey conducted by the exchange, 51% of the respondents admitted to first registering crypto Aadhaar recommendations from friends and family. The platform sent the survey to 8.5 million users of WazirX, of which 1% of the users responded.
The survey also revealed that 44% of the respondents held up to 10% of their overall investment portfolio in crypto.
Apart from word of mouth, the pull of astronomical returns cannot be ruled out as a possible factor behind the widespread adoption of crypto assets.
According to data available with CoinGecko, a digital currency price and information data platform, on a year-on-year basis, Bitcoin is up 68% and Ethereum 441%, while Dogecoin on the other hand is up 3,596% and Shiba Inu 4. ,39,49,900%.
On BuyUcoin, there have been huge gains for long-term investors who started buying crypto between 2020 and 2021. “However, the average return on liquid portfolios remains in the range of 45-55% for investors with quarterly holding periods and 15-25% for monthly holders and recent investors,” said Shivam Thakral, CEO of BuyUcoin.
In terms of demographics, according to CoinDCX, the younger age group (between 18-30 years of age) is mostly looking for short-term trading/investment opportunities ranging from a week to a month. However, this trend is limited to only a few meme coins.
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