India’s Crypto Revolution: How Tier-2 and Tier-3 Cities Are Driving the Future of Digital Assets

Emerging Crypto Powerhouses in India

India’s cryptocurrency landscape is no longer dominated by metros like Delhi, Mumbai, and Bengaluru. The rise of tier-2 and tier-3 cities—such as Botad, Jalandhar, Patna, Kanchipuram, and Dehradun—marks a paradigm shift. According to a recent CoinSwitch report, these smaller cities are evolving as active hubs in the digital asset space, showing that crypto fever has extended beyond the traditional urban strongholds.

This trend reflects a growing appetite for financial diversification among young investors. With over 2 crore active crypto users in India, a significant majority are exploring a variety of digital assets, ranging from mainstream cryptocurrencies like Bitcoin and Ethereum to niche segments such as meme coins and decentralised finance (DeFi) tokens.

The Youth at the Helm of Crypto Adoption

India’s younger demographic is spearheading the nation’s crypto boom. CoinSwitch’s data reveals that a staggering 75% of crypto investors are aged 35 or younger. The largest segment comprises individuals aged 26-35, accounting for 42% of the user base, followed by the 18-25 group at 30%.

Interestingly, older investors are beginning to contribute significantly, with those aged 36 and above making up 28% of the market. As Balaji Srihari, Vice President at CoinSwitch, aptly noted:
“2024 has been a transformative year for the global crypto ecosystem, propelled by political and regulatory changes that have accelerated mainstream adoption. At CoinSwitch, we’ve observed a sharp increase in crypto investments across India, extending well beyond metropolitan areas to tier-2 and tier-3 cities.”

Sumit Gupta, co-founder of CoinDCX, echoed similar sentiments:
“The maturity of Indian crypto investors has been remarkable. The average age of investors rose from 25 in 2022 to 30 in 2023, attracting more seasoned participants who seek diversified portfolios.”

Smaller Cities Redefining India’s Crypto Future

Smaller cities and towns are reshaping the Indian crypto ecosystem in unexpected ways. While Delhi-NCR remains the leader in overall investment volumes, regional diversification is changing the dynamics.

• Bengaluru leads in Layer-1 token activity, highlighting its role as a hub for blockchain innovation.

• Barbaka, a lesser-known town in Assam, has become a focal point for DeFi, with 24% of participation in this segment.

• Jalandhar has emerged as a hotspot for meme coin investments, contributing 18% to the sector.

These trends challenge the long-held belief that major urban centers dominate the crypto market. Cities like Lucknow, Patna, Jaipur, Indore, Bhubaneswar, and Ludhiana have entered the top 15, further decentralizing India’s crypto footprint.

The Rise of Meme Coins and DeFi Tokens

Meme coins have carved out a significant niche in India’s crypto market, accounting for 13% of total investments in 2024. Dogecoin leads the pack, capturing 55% of meme coin investments, followed by PEPE at 12% and BONK at 6%.

PEPE has been a standout performer this year, boasting a phenomenal 1300% growth. Layer-1 tokens continue to dominate, accounting for 37% of all investments, while DeFi tokens secure the second spot with 17%. Collectively, meme coins, gaming tokens, and Layer-2 assets constitute over 81% of India’s crypto market in 2024.

What Lies Ahead for India’s Crypto Market?

The rapid growth of India’s cryptocurrency market is fueled by a combination of technological advancements, younger demographics, and increasing awareness about digital finance. The rise of tier-2 and tier-3 cities is a testament to the democratization of financial opportunities in the digital age.

As regulatory frameworks evolve and more Indians explore blockchain technology, the country is poised to play a pivotal role in the global crypto ecosystem. Whether it’s meme coins, DeFi tokens, or Layer-1 assets, the diversity of investments underscores a robust appetite for innovation and growth.

India’s crypto revolution has only just begun, and its smaller cities are proving that the future of digital assets lies in the hands of a broader, more inclusive investor base.