Startups in the cryptocurrency space are riding a worldwide optimism wave.
Due to Bitcoin’s record-breaking run and a more hospitable global regulatory environment, cryptocurrency firms like CoinSwitch, CoinDCX, and WazirX are experiencing a surge in market momentum following months of uncertainty. As people return and volumes increase, the founders FE spoke with stated that the focus has shifted from survival to scaling.
“FY24’s first half was a little unclear. People were still in shock at last year’s volatility. However, as time went on, we began to notice a change in the situation,” CoinSwitch co-founder Ashish Singha told FE. The company experienced a 2.5-fold increase in user registrations and a 6.5-fold increase in trade volumes between January and December 2024. Additionally, it anticipates becoming profitable on a large scale shortly.
Although the direction is becoming more apparent, the landscape continues to change. The ecosystem is much more structured now than it was even a year ago, which gives us the confidence to build responsibly,” Singha continued.
Bitcoin surpassed $121,000 mark in July
On July 14, Bitcoin broke beyond the $1,21,000 barrier for the first time, surpassing earlier highs from May to January. At $3,048.23, the second-largest cryptocurrency, Ether, reached its highest level in five months. Crypto is becoming more and more popular because to the global bull run, the explicit support for it shown by world leaders like Donald Trump, and the increasing institutional involvement of industry titans like BlackRock. We always thought this day would arrive, and we were prepared for it,” CoinDCX co-founder Sumit Gupta stated.
DCX Group sees surge in volumes
The DCX Group, which consists of BitOasis in the United Arab Emirates and Bahrain, CoinDCX India, and Okto, reported yearly income of Rs 1,179 crore, which was bolstered by yearly transaction volumes of Rs 13.7 lakh crore. It recorded a spot trading volume of Rs 23,497 crore in the first half of FY25, up 37% from the previous year; 19 million users registered, up 30%; and more than 200,000 active crypto SIPs (systematic investment plans), up 1,071%. Additionally, Gupta noted the increasing popularity in Tier-2 cities like Nashik and Faridabad.
Despite obstacles, WazirX remains optimistic. “The sentiment about broader cryptocurrency is still positive. We think the market is still headed for another hyper-bull market like the ones in 2017 or 2021. We are reminded of 2016 or 2020 by this year. We are setting up WazirX to be prepared for the upcoming hyper-bull cycle,” a representative stated. The company is currently in the last stages of restructuring after recovering from a cyberattack in July 2024.
Globally, Singapore, Hong Kong, and the United Arab Emirates have strengthened their legislation, while Europe’s Markets in Crypto-Assets Regulation went into effect at the end of 2024. The first legislative framework for regulating payment stablecoins was established in the United States on July 18 of this year with the signing of the GENIUS Act, the Guiding and Establishing National Innovation for US Stablecoins Act.
According to the creators of cryptocurrency startups in India, governmental discussions have shifted from whether or not to regulate cryptocurrencies to how to do so.
There were serious discussions about outright banning the sector a few years ago. We now have clear regulations about advertising, KYC, anti-money laundering, and, of course, taxes,” Gupta stated.
Although there is now a greater emphasis on trust, compliance, and innovation, investor sentiment has also improved. According to the India Web3 Landscape Report 2024 by Hashed Emergent, web3 startups in India that concentrate on creating blockchain-based platforms and applications raised $564 million in 2024, a 109% increase from the year before. Crypto cold killed the enthusiasm, but it didn’t kill hope. A calmer, more realistic optimism has replaced the heedless speculative fever.
The founder and MD of 35North Ventures, Milan Sharma, stated that investors are not anti-crypto; rather, they are simply fed up with funding fantasies.Interest is also being shown in areas outside of exchanges, like Web3 infrastructure, stablecoins, developer tools, real-world asset tokenization, and decentralized systems that use AI. By acquiring BitOasis, CoinDCX is one company that is growing into areas with more lenient regulations. Trades have increased by 30%, volume by 40%, and revenue by 50% since BitOasis joined forces.
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