Cryptocurrency research firm Crebaco has found that cryptoasset trading volumes in India’s leading exchanges has nosedived since April 1, the day a new tax on crypto profits came into effect in the country.

The main developer of the Uniswap decentralized exchange protocol, Uniswap Labs, has launched a new venture arm called Uniswap Labs Ventures. The new unit will invest in Web3 projects across numerous categories.

Higher quality cryptocurrency trading platforms have been steadily gaining market share over the last few quarters, to the point they now command over 90% of the cryptocurrency space’s trading volumes.

Sponsored: The Invictus suite of funds offered commendable performance in a quarter marked by heightened volatility in the Bitcoin and broader cryptoasset market. All five of the Invictus funds registered positive returns for the quarter, with the vast majority outperforming their benchmarks. 

Top stories in the Crypto Roundup today:

• Crypto Trading Volumes Nosedive in India
• Uniswap Labs Launches Venture Arm
• Top-Tier Exchanges’ Market Share Surpasses 90%
• What Is Uniswap?
• Sponsored: Invictus Capital continues to deliver an uninterrupted path of growth across all its funds

Crypto Trading Volumes Nosedive in India

Cryptocurrency research firm Crebaco has found that cryptoasset trading volumes in India’s leading exchanges has nosedived since April 1, the day a new tax on crypto profits came into effect in the country.

The research firm analyzed the trading volumes of four Indian exchanges and found a 72% drop on WazirX, 59% on ZebPay, 52% on CoinDCX, and 41% on BitBns. The drop followed the introduction of a 30% tax on profits from crypto transactions that doesn’t allow investors to offset gains with losses from other transactions.

The most controversial provision, a 1% tax deduct at source (TDS) liability, won’t take effect until July 1. The drop in volumes on Indian exchanges, it’s worth noting, comes at a time in which the cryptocurrency market has taken a turn and may be part of a wider trend.

Crebaco CEO Sindharth Sogani was quoted saying:

“It is clear that the new tax has impacted the market negatively. The government must look into this, and because there is no way to stop this (crypto), the government should embrace the technology.”

Sathvik Vishwanath, co-founder and CEO of Unocoin, a popular Indian exchange, said the new tax law is affecting the market.

Earlier this week Coinbase disabled its support for the Unified Payments Interface (UPI) in India shortly after it launched in the country over a statement by the National Payments Corporation of India (NPCI).

Uniswap Labs Launches Venture Arm

The main developer of the Uniswap decentralized exchange protocol, Uniswap Labs, has launched a new venture arm called Uniswap Labs Ventures. The new unit will invest in Web3 projects across numerous categories.

The size of Uniswap Labs Ventures’ fund wasn’t disclosed, although the firm’s ventures lead Matteo Leibowitz reportedly said the investments will be made from the Uniswap Labs balance sheet.

Before launching its venture arm, Uniswap Labs invested in 11 startups and projects including MakerDAO, Aave, Compound Protocol, and Tenderly.

Uniswap Labs Ventures is set to participate in the governance systems of projects it’s involved with, including some blue-chip DeFi protocols like Compound and MakerDAO. The firm will invest in both equity and token deals.

Top-Tier Exchanges’ Market Share Surpasses 90%

Higher quality cryptocurrency trading platforms have been steadily gaining market share over the last few quarters, to the point they now command over 90% of the trading volume in the cryptocurrency space.

CryptoCompare’s most recent Exchange Benchmark report revealed that Top-Tier exchanges traded a total of $1.5 trillion in February, compared to $62 billion for Lower-Tier exchanges. CryptoCompare ranks more than 150 global spot exchanges based on a comprehensive methodology that assesses counterparty, operational, trading, and security risks to distinguish Top Tier exchanges.

Top-Tier exchanges, it’s worth noting, are those ranked AA-B. Only four cryptocurrency exchanges – Coinbase, Gemini, Bitstamp, and Binance – have received an AA rating from the cryptoasset data provider, while 11 exchanges received an A rating, 27 received a BB rating, and 37 received a B rating. 80 crypto exchanges were ranked as Lowe-Tier.

Since CryptoCompare’s Exchange Benchmark was introduced in 2019, its methodology has expanded and is now approached in several dimensions using a comprehensive data set, covering more than 150 exchanges across 8 categories of evaluation, utilizing over 60 qualitative and quantitative metrics.

What Is Uniswap?

The boom in Decentralized Finance (DeFi) has been fueled by various projects on the Ethereum blockchain that later expanded to other protocols. Uniswap is one of them.

At its core, Uniswap is a decentralized automated market maker (AMM). It’s a decentralized exchange that does not have an order book, a token listing evaluation process, and can be used directly from an Ethereum wallet like Metamask.

Instead of using an order book, Uniswap uses a model that requires liquidity providers to deposit their funds into liquidity pools. Uniswap matches buy and sell orders against these liquidity pools, and uses a decentralized pricing mechanism that smooths out order book depth. The code behind it is open-source and can be reviewed on GitHub.

Find out more on CryptoCompare’s guide on Uniswap below.

Invictus Capital continues to deliver an uninterrupted path of growth across all its funds

The Invictus suite of funds offered commendable performance in a quarter marked by heightened volatility in the Bitcoin and broader cryptoasset market. All five of the Invictus funds registered positive returns for the quarter, with the vast majority outperforming their benchmarks. The simple average return across our suite of funds was 10.7% for the quarter, which is equivalent to an annualized return of 50%.

• The Crypto10 Hedged (C10) fund offered the greatest returns over the quarter at 23.91%, far outstripping its benchmark of 1.66% and Bitcoin at 12.36%. 

• Crypto20, the flagship fund, had a stellar year registering a return of 334.98%, it significantly outperformed its Top 20 equally weighted benchmark, which rose 261.92%.

• The Invictus Bitcoin Alpha (IBA) fund  managed to outperform Bitcoin throughout the fourth quarter, marking a total return of 14.56%, accompanied by significantly less volatility.

• The Hyperion venture capital fund continued on its impressive run, appreciating a further 5.05% off the back of a Quantfury dividend and Syntropy revaluation. The large dividend received by Quantfury will allow for a healthy level of buy-and-burn activity on the IHF token over the coming months.

• Invictus Margin Lending (IML) Fund registered a 2.48% net return for the quarter against its 1.48% benchmark hurdle.

Invictus Capital is now on the cusp of a historic migration into a fully-regulated fund structure that will place us at the forefront of innovation within the asset management space. It should also bring our investors the peace of mind that comes with additional, 3rd-party oversight of our operations.

Disclaimer:

Cryptocurrency trading involves high risk, and is not suitable for all investors. Before deciding to trade cryptocurrencies, tokens or any other digital asset you should carefully consider your investment objectives, level of experience, and risk appetite.

Its content does not constitute financial advice. Please remember that the value of investments, and any income from them, can fall as well as rise so you could get back less than you invest. If you are unsure of the suitability of your investment please seek advice.

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State of the Crypto by Top Tier Exchange Volume

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