In the past month, data from useful tulips analysis site indicates that more Bitcoin has changed hands in local peer-to-peer exchanges in India than ever before. In addition, relative newcomer Paxful has recently overtaken LocalBitcoins as the exchange of choice in India.
Bitcoin trading on Paxful in India surged to $ 1.48 million on May 10, while local LocalBitcoins trading saw more than $ 1.25 million in BTC traded. The combined total, of around $ 2.7 million, is close to its record level of $ 2.9 million in December 2017. Despite the peak in late December, however, BTC volume growth on P2P exchanges The month in May is so far unmatched, as data from Utile Tulips shows a clear upward trend.
“The Indian market holds great potential and importance for the future of the crypto economy,” said Ray Youssef, CEO of Paxful, in a statement. “People in India are betting big on Bitcoin, which presents an opportunity for better financial returns. We are actively focusing our efforts on bringing cryptocurrency to the masses of the country to help eradicate poverty, boost economies and create jobs. “
Until early March this year, India had put in place a ban prohibiting banks from doing business with Bitcoin and cryptocurrency companies. The country’s Supreme Court struck the ban after judging it unconstitutional, although it was only a few weeks before the coronavirus has taken over a large part of the world and the outbreak of several national closures has occurred.
Meanwhile, Bitcoin – which traded above the $ 10,000 mark the previous month –lost more than half of its value in a matter of weeks and fell into the $ 4,000 range. This could explain the decline in Bitcoin trading at the time. Volume fell to an annual low of around $ 1.5 million in late March in India, which corresponds to trends around the world.
Besides the changes in the way local law deals with cryptography, the current state of the Indian economy may also have something to do with the growth of BTC trade in the region. India’s national currency, the rupee, is currently suffering from a 9.66% inflation rate, which is considerably higher than the average annual rupee inflation rate of around 4.72%. In comparison, the inflation rate of The US dollar is 2.31%.