Indian traders are avoiding Bitcoin and Ethereum in favor of the Shiba Inu, according to market data. SHIB is experiencing comparatively high volume, despite the country's harsh tax regime.
Indian traders are not clamoring for the biggest coins on the market like Bitcoin or Ethereum , instead they are looking for the popular Shiba Inu (SHIB) meme token. The latter is the most traded token on major crypto exchanges in India, including Zebpay, WazirX, and CoinDCX .
Nomics data shows that 9% of all crypto trading in the country includes the SHIB token . SHIB merchants on Zebpay, which is looking to move away from India due to strict tax rules, have traded almost $120 million since the beginning of the year.
Meanwhile, data from WazirX shows that more than 10% of trading is done in the SHIB token . Traders have moved more than $970 million in 10 months. The other major Indian exchange , CoinDCX, sees SHIB as accounting for more than 5% of its total trading volume .
These comparatively high volumes for a country that saw its cryptocurrency trading hit hard by the harsh tax schemes that were introduced earlier this year.
Trading volumes plummeted following the ruling, forcing many crypto firms out of the country. As for more general regulation, India is not expected to introduce such legislation until there is a global consensus on the matter.
Why do Indians buy SHIB?
One reason SHIB might be experiencing unusually high activity is that there is a strong SHIB community in the country. Investors have benefited from the token even during the COVID pandemic . They expect this to continue as they move into the future.
Despite heavy taxes on cryptocurrencies, India is seeing a spike in cryptocurrency activity in recent weeks.
There has been a 45% increase in user registrations . Analysts say the weakening rupee and underperforming stock markets have pushed investors towards Bitcoin.
The Shiba Inu ecosystem is growing
The Shiba Inu token has seen several developments in recent weeks, including being listed on well-known exchanges. BitMEX revealed that six new cryptocurrencies would be listed on October 10, and SHIB was included.
The team is also working on the Shibarium layer 2 solution, although a specific date regarding its implementation has not been provided. The public beta is expected soon, but this does not have a definite date either.
The other major development in the Shiba Inu ecosystem is the release of the Shiba Eternity game . It was released on October 6 , reaching number one in the card games category on the App Store.
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