India’s cryptocurrency landscape is witnessing a significant shift, with smaller cities rapidly emerging as new hubs for digital currency investment. Recent data reveals that tier-2 and tier-3 cities are not just focusing on popular cryptocurrencies like Bitcoin, but are also diversifying into other digital assets, marking a notable change in the country’s investment patterns.
WazirX, a prominent cryptocurrency exchange, reported a staggering 2,648% growth in sign-ups from these smaller cities in 2021. This surge has been particularly pronounced in cities such as Bhopal, which saw a 100% increase in new investors. Remarkably, tier-2 and tier-3 cities accounted for about 55% of total user sign-ups on WazirX, surpassing the growth rate in tier-1 cities. This trend indicates a broader and more inclusive participation in the crypto market across India.
The profile of these new investors is also varied, including young professionals below 35 years old, IT experts, MBA graduates, engineers, and startup owners. Their investment interests have extended beyond Bitcoin to emerging technologies like decentralized finance (DeFi) and Non-Fungible Tokens (NFTs). To cater to this growing demographic, exchanges are introducing products akin to systematic investment plans (SIPs), lending, staking, and margin-trading.
At the national level, India boasts over 19 million cryptocurrency investors, with a significant portion, nearly 75%, falling in the young demographic of 18 to 35 years. This statistic underscores the growing interest of the youth in the crypto market. Major metropolitan areas such as Delhi, Bengaluru, and Mumbai still play a pivotal role, accounting for over one-fifth of the country’s total crypto investment value. In 2023, Dogecoin emerged as the most popular cryptocurrency by invested value, followed by Bitcoin and Ethereum.
The rising interest in cryptocurrencies in India is occurring amidst attempts to establish a clear regulatory framework for digital currencies. Despite these regulatory challenges, the cryptocurrency investment boom persists, influenced by factors such as social media, aggressive marketing strategies, and the shift towards remote working during the pandemic.
The data and trends from exchanges like WazirX and BuyUcoin highlight a dynamic shift in India’s cryptocurrency landscape, suggesting a future where digital assets become increasingly mainstream across various demographics and geographies within the country.