India’s Crypto Growth: Analyzed by Regional Shifts

India’s smaller towns are now driving the nation’s cryptocurrency growth, according to a new report by CoinDCX. This shift indicates a significant change from the earlier focus on major cities. The report, based on data from over 25 million users, shows a more even distribution of crypto activity across the country.

Key Points

• Smaller towns are now the biggest crypto adopters in India.
• 43.4% of crypto activity comes from Tier-3 & Tier-4 towns.
• Tier-2 cities contribute 32.2% of total crypto activity.
• Bitcoin remains the most popular cryptocurrency asset.
• Uttar Pradesh leads in state-wise crypto investment participation.
• Regional growth reflects broader trends in global crypto markets.

Specifically, Tier-3 and Tier-4 towns accounted for 43.4 percent of total crypto activity, while Tier-2 cities followed with 32.2 percent. This indicates growing interest and engagement with digital assets, especially in areas outside of traditional urban centers.

“Tier-1 cities continue to contribute meaningfully, but participation is now far more geographically distributed, with Bharat firmly at the centre of this expansion,” noted the report. This suggests that India’s crypto market is maturing and becoming more representative of the country’s population.

Uttar Pradesh topped the list of states with 13 percent of total invested value, showcasing a diverse portfolio approach using small-, mid-, and large-cap assets. Bitcoin dominated both investment and trading activity within the state. Maharashtra followed closely with 12.1 percent, highlighting its status as a technological hub.

In southern India, Karnataka contributed 7.9 percent, supported by Bengaluru’s tech ecosystem. Delhi NCR had 7.4 percent, indicating a mature investor base. Haryana and Rajasthan also saw considerable upward momentum, signaling rising investor confidence.

Across various states – including West Bengal, Andhra Pradesh, Tamil Nadu and Bihar – a methodical approach to investing, often centered around Bitcoin and XRP, demonstrated a deepening of crypto engagement. Overall, these state-level variations reveal a broader and more diversified landscape for India’s crypto market in 2025.

India’s crypto growth is transforming the nation’s financial landscape, driven by regional adoption and evolving investment behaviors.