– Photo : Amar Ujala
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In the year 2021, the cryptocurrency market saw a growth of 15 and a half percent compared to 2020. While Indian investors had only invested USD 28.10 million in cryptocurrencies in 2020, it increased to about USD 438.18 million in 2021. In the last six months of the year 2022, there has been an investment of about 139.9 million dollars in cryptocurrencies.
Due to the slowdown in the markets around the world since the beginning of this year, its effect has also been seen in the crypto market. Due to the weakening of cryptocurrencies in the market for some time now, a large number of Indian investors are also seen withdrawing money from it. This has started a debate in the market whether the days of cryptocurrencies in India are over or will NFT or cryptocurrencies once again bring color to the market?
In the year 2022, some new regulations related to crypto have also come into effect in India. These include a 30 percent tax on crypto income and a provision of 1 percent TDS in crypto transactions. Experts believe that its effect is seen on the data of investments in cryptocurrencies. According to ZebPay CEO Avinash Shekhar, due to the new regulations coming into effect, there has been a decrease in the number of investments in cryptocurrencies and startups related to it.
According to data from the World Economic Forum, the total market capitalization of the cryptocurrency sector has increased by 187.5 percent in the year 2020. Of the entire crypto market, bitcoin alone returned about 60 percent (59.8%).
Investments in the NFT (Non-Fungible Token) and Metaverse markets in the year 2021 amounted to US$65 million and US$0.84 million respectively. Looking at these investments, it can be inferred that investor confidence remains in this sector.
According to a study by NFT company nonfungible.com, the overall scenario of investments in NFTs has seen a growth of 21000 percent by the year 2021.
NFTs and Metaverse have also allowed users to have proof of ownership on the blockchain. According to Ramkumar Subramaniam, CEO and co-founder of gurdianlink, the year 2021 saw many forms of NFTs in the Indian digital market. During this time, Indian celebrities and brands have also openly advocated for NFT and Metaverse culture.
Market experts believe that the year 2022 may see more utility-oriented and user-oriented projects in the NFT and metaverse markets. The concept of playing to earn will also have an impact. The impact of NFTs and the Metaverse can also be seen in many government initiatives.
On the other hand, if we talk about the global markets, the year 2021 has seen investments of $14270.38 million, $5005.67 million and $661.33 million in the cryptocurrency, NFT and metaverse markets respectively. Nilesh Jahargirdar, Vice President Marketing, Xcube Labs, a software company associated with the crypto market, believes that to establish India as a leader in the global market, more investments are needed under Blockchain technology. He believes that the announcements in the Indian government’s budget in the year 2022 regarding digital currency have given hope to boost the digital currency market in India in the coming days.
In such a situation, we can say that although investors are withdrawing money from the crypto market in fear due to the volatility of the global markets at present, but as soon as the market recovers, there is hope for a return to it. Talking about the metaverse, the Indian market is yet to become a virtual hub for its shopping and transactions. However, there is also a side to this whole discussion that till now no clear policy regarding NFT has been announced by the government and the Reserve Bank of India. Recently, RBI Governor Shashikant Das has said that cryptocurrencies are dangerous.