Trading volume on WazirX, India’s largest crypto exchange, topped the $350-million level for the first time on Monday, even as the bourse witnessed outage over the weekend and prices of top cryptocurrencies traded flat over the past few sessions.
“We have scaling systems in place, which start creating new server instances to accommodate new users. To create new servers, our scaling system relies on several components, one of which is provided by a third-party service provider. Due to unprecedented traffic, we hit an internal rate limit with our service provider, leading to failure in creating new servers, and choking of our existing servers,” said Nischal Shetty, chief executive officer, WazirX.
“Global news and developments, such as MicroStrategy, Visa, MasterCard and Tesla getting involved in crypto, have given a boost to crypto adoption in India. There is a huge surge in new signups and trading volume due to the fact that crypto is becoming a popular concept in India now,” Shetty added.
According to Shetty, another key factor that has been driving investors towards crypto currencies is regulatory easing in India. “With the Parliament session over, it must have encouraged several large buyers to participate in crypto leading to a supply crunch,” he said.