India’s largest crypto exchange in terms of trading volume, WazirX, is now struggling to meet the skyrocketing demand for Dogecoin. The global value of DOGE trading volumes has tripled within May 3 and 5 to over $42 billion. As per the CEO and Founder of WazirX, Nischal Shetty, this has caused the system of the exchange to crash due to the surging volume being incorrectly perceived as a cyberattack.
Shetty also remarked that the Dogecoin surge had caused an almost decade-old company, Robinhood, to go down. He also added that his company is just three years old. However, no other crypto exchange in India has seen this much amount of traffic.
Since January, the company has managed to grow over 300%. They see an all-time high every day in terms of volume for trading, along with active users and traffic on WazirX. However, as the company is growing, WazirX has found it much challenging to get along with the growing demand. However, it is not the first instance when this exchange is facing such an issue.
Many complaints are there, which are surfacing on crypto user chat groups over Reddit and Telegram. Common grievances mostly include security issues with OTP authentication. Also, there is a lack of customer support. These are on the top of the most relevant issues of their servers, which are struggling to cope with the higher trading volume.
On April 4, an outage suddenly occurred on WazirX when the trading volume crossed $270 million. The exchange went out for over a day before the resolving of the issues. Users also complained about the deposits, which got stuck with another outage hit in early May. Shetty said that they were facing issues with a payment partner on that day.
This is highlighting another potential issue and their weak point. The regulatory uncertainty in India is making the payment processors and banks more hesitant to engage with cryptocurrency exchanges. As being dependent on them is pretty much uncertain with glitches in withdrawal, the deposits from crypto wallets are increasing.
However, the Dogecoin Saga is continuing. In the past year, the price of it rose to the level of 24,610%. But recently, in January, it was trading at only a fraction of a penny. In February, it rose to 0.05%. Since Elon Musk came up with his tweet, it has reached an all-time high of $0.65 on May 6.