Daily burned ETH spikes, India trading volumes drop as tax is introduced
This month, BEQUANT’s Head of Research Martha Reyes and her team have analyzed the burn rate of ETH with the largest NFT minting in history, as well as the volume of crypto trading in India as taxes kicked in.
Daily Burned ETH Spike
Martha Reyes, Head of Research at BEQUANT, commented: “Almost $160 mn in ETH was burned as gas fees spiked on the largest mint in history, Otherdeed NFTs, leading to a total net issuance of -52.9k.”
“The clogging of the network is a reminder that scalability is still an issue, as many would-be buyers paid gas fees but were unable to procure NFTs, which gave them a right to buy metaverse plots.”
Indian Crypto Volumes Stumble
Martha Reyes, Head of Research at BEQUANT, commented: “Trading volumes in India, one of the countries with the highest crypto adoption, weakened as a 30% capital gains tax on digital assets took effect on April 1, 2022.”
“Along with the capital gains charge, a 1% tax, a deductible at source, on digital-asset transfers, above a certain size, starts July 1 and may threaten high-frequency trading.”
To read the full monthly report for April, sign up to our Monthly Quant report here.
MarthaMay 6, 2022
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