Barely two days after losing 8 percent market cap within 24 hours, cryptocurrency prices started recovering on Wednesday. Bitcoin rose 1.72 percent to hit $41,424 (11.30 am IST), Ethereum prices rose 1.72 percent to $3,094, Terra rose 6 percent to $95, Solana surged 5.93 percent to $108, Avalanche rose 3 percent to $79.53.
Cardano prices rose by 1.55 percent to $0.945 and Polkadot rose 3.05 percent to $18.85, according to CoinDesk data.
The top gainers included Storj that rose 22.93 percent, Synthetix which jumped 20 percent and Kusama with 10 percent gains. At the same time, even during rising crypto market, top losers included Monero that fell by 4.26 percent to $255.60, Kyber Network that fell by 2.14 percent to $4.25 and PAX Gold that declined by 1.42 percent to $1,947.
In past one week, bitcoin prices rose by 3.01 percent, Ethereum rose 1 percent, BNB rose 0.46 percent, ripple rose 6.6 percent, solana surged 3.94 percent and Terra rose 11.37 percent, as per CoinMarketCap data.
In Indian crypto exchanges, there is a considerable fall in crypto transaction volumes since the start of April. Earlier in the month, the fall in volumes was attributed to imposition of crypto taxes. Later, the decline resulted mainly because of discontinuation of UPI services from April 11 onwards.
“Historical data indicates that transaction taxes significantly reduce trading volumes, resulting in greater volatility, increased risk, and higher costs for local investors and savers. Ironically, the tax also defeats its very purpose to generate tax revenue because significantly lower volumes will mean that there are fewer transactions to tax," says Kapil Rathi, CEO and co-founder of CrossTower.
Meanwhile, in another news, the government of Ireland is planning to ban political parties from accepting campaign donations in cryptocurrency. This is an attempt to block the perceived threat of Russian interference in the Ireland’s elections against the backdrop of a clash between the West and Moscow over the war in Ukraine.