Previously dormant cryptocurrency investors are making a strong return to trading platforms, with major exchanges reporting that up to half of once inactive users are resuming their activities. This resurgence has been spurred by the groundbreaking GENIUS Act on stablecoins in the US and record-high prices for Bitcoin.
Platforms like CoinDCX and Mudrex have experienced record trading volumes over the last four months, with a notable uptick in engagement from inactive users. Mudrex highlighted a significant increase in reactivations since July 2025, with approximately 45–50 percent of dormant users returning to trade and invest.
“Investing in India has seen a remarkable acceleration over the past two years. Bitcoin trading volumes rose by 49 percent from July to August this year, while Ethereum surged by 105 percent since July. Additionally, Solana’s volumes increased by 50 percent,” stated Mudrex.
CoinDCX has also observed the revival of inactive users since July 2025, attributed in part to a recent breach that led to initial withdrawals. However, as clarity returned, users resumed trading. The exchange also noted an increase in engagement among equity investors, rising from 39 percent in October 2024 to 53 percent in June 2025.
Sharat Chandra, Founder of EmpowerEdge Ventures—a Bangalore-based firm focused on startup growth in web3 and fintech—remarked that the surge in trading activity in July and August was primarily driven by the passage of the GENIUS Act and a significant capital flight into Bitcoin and other asset classes due to the “big beautiful bill.”
“In August 2025, Bitcoin reached an all-time high of over $124,000. The Congressional Budget Office (CBO) projects that this new law will expand the budget deficit by $2.8 trillion by 2034. Inflationary concerns related to tariffs have further contributed to the upturn in crypto trading,” Chandra added.
Following this strong performance, exchanges are now bracing for a typical decline in trading during the October-November period, reflecting the sector’s seasonal market patterns. Sumit Gupta, Co-Founder of CoinDCX, noted that historically, the crypto market gains strength towards the year’s end, predicting Bitcoin might reach around $150,000 before year-end, promoting healthy market participation.
In addition to market fluctuations, Chandra pointed out a trend of Indian trading activity shifting to offshore exchanges. A report by Esya, a think tank, revealed that Indian investors funneled nearly ₹3.5 lakh crore in trading volume to offshore platforms from July 2022 to July 2023, accounting for over 90 percent of total trading during that timeframe. The government collected approximately ₹258 crore in tax deducted at source (TDS), mostly from compliant domestic exchanges, missing out on an estimated ₹3,493 crore in potential revenue from offshore activities. The report highlighted that between 3 and 5 million Indian users transitioned away from domestic exchanges, prompting a move towards platforms beyond regulatory oversight rather than enhancing regulation and revenue collection.
Published on September 14, 2025
