Dogecoin mania influences Indian crypto exchanges By CIOReviewIndia Team

Dogecoin mania influences Indian crypto exchanges

CIOReviewIndia Team | Friday, 07 May 2021, 12:11 IST

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Dogecoin mania influences Indian crypto exchangesNamed after a meme of the Japanese dog breed Shiba Inu and with supporters including Tesla's Elon Musk, the cryptocurrency has risen over 10X in the last three months, with its market cap standing at almost $80 billion.

Indian cryptocurrency exchanges are now seeing record-breaking trading volumes of Dogecoin, causing massive surge in traffic on these platforms.

Binance owned WazirX’s Doge/INR trading slowed its system as the platform saw record traffic that it did not have the capacity to support.

CoinSwitch Kuber, backed by Sequoia Capital and Tiger Global, registered 200% growth in Dogecoin volumes month on month, with a jump of 1300% for Dogecoin in the last two weeks alone.

Dogecoin’s volumes and prices are also topping across the world on the much anticipated appearance of Musk on an American TV show on May 8.

Musk has hinted at discussing Dogecoin during his appearance on Saturday Night Live, driving retail investors to invest in the crypto asset.

Active traders on WazirX jumped by 123% in April and have been consistently growing on other platforms like CoinDCX.

Nischal Shetty, founder of WazirX, stated the platform is being re-architected to deal with the expected surge on May 8 that could double or triple from Wednesday's peak.

Shetty estimates that Dogecoins worth Rs 600 crore have been traded on the platform in the last 24 hours. On Coinswitch Kuber average daily volumes have been around Rs 100 crore in the last two weeks.

Most Indian crypto exchanges have listed the token, although some like ZebPay have steered away despite investor interest.

“We may list it, but first I'd like to be sure it isn't just the Tulip Mania of the 21st century,” said Vikram Rangala, COO of ZebPay, referring to one of the most infamous market bubbles and crashes of all time in the 1600s.

The majority of crypto traders in India are under 25.

Users say that if enough people ascribe value to the cryptocurrency, then the token ends up becoming valuable for that community, and use cases eventually arise.

The fear of missing out and the thrill of owning a meme stock as well as the heavy influence of Tesla’s Musk is driving many new traders to Dogecoin, even though they may not fully understand blockchain technology.

Long-term believers in crypto's future and blockchain technology say that Dogecoin distracts people from the true value of crypto because it makes the industry about quick returns.

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