Beyond metros: How tier-3, tier-4 towns powered India's crypto boom in 2025

 

India’s smaller towns emerged as the biggest growth engine for crypto adoption in 2025, signalling a decisive shift away from metro-centric participation, according to CoinSwitch’s India’s Crypto Portfolio 2025: How India Invests report.

 

Based on insights from over 25 million users, the report highlighted a clear redistribution of crypto activity beyond traditional urban centres. While metro cities played a crucial role in the early stages of adoption, 2025 saw participation spread more evenly across the country.

 

According to the report, Tier-3 and Tier-4 towns emerged as the largest contributors, accounting for 43.4 per cent of total crypto activity. Tier-2 cities followed with a 32.2 per cent share, underscoring growing awareness and engagement with digital assets across semi-urban India.

 

 

“Tier-1 cities continue to contribute meaningfully, but participation is now far more geographically distributed, with Bharat firmly at the centre of this expansion,” the report noted. 

Source: CoinSwitch( India’s Crypto Portfolio 2025: How India Invests)

                                                

                                  The broader trend mirrors shifts underway in global crypto markets. The past year has been significant for the global crypto industry, said Ashish Singhal, co-founder of CoinSwitch, citing major policy developments internationally.

 

“Major policy shifts, from the GENIUS Act advancing in the US to the UK formally recognising crypto as property, signal that digital assets are entering the mainstream of global finance,” said Singhal.

 

He added that India’s position in the global crypto landscape is distinctive. “India stands out in part due to growing adoption and in part due to the absence of an enabling policy framework. India has led the world in retail crypto adoption for the third consecutive year. This is not a spike, it’s a structural trend shaped by demographic strength, digital-native behaviour, and rising financial participation,” Singhal said.

Uttar Pradesh tops state-wise participation

Uttar Pradesh led all states, contributing 13 per cent of the total invested value nationwide. Investors in the state displayed a diversified approach in 2025, with portfolios spread across small-cap, mid-cap, and large-cap assets.

 

“The state’s portfolios reflected a balanced risk–return strategy, combining higher-growth small caps with the stability of bluechip and large-cap tokens,” said the report. Bitcoin remained the most dominant asset in both investment value and trading activity.

 

Maharashtra followed closely with a 12.1 per cent share, reaffirming its role as a financial and digital innovation hub. Investor behaviour reflected market maturity, with a strong preference for bluechip and large-cap assets, alongside selective exposure to high-growth tokens. Bitcoin and XRP were the most preferred assets in the state.

 

In southern India, Karnataka accounted for 7.9 per cent of total investment, supported by Bengaluru’s technology ecosystem and early adoption of digital finance. Portfolios reflected a methodical strategy, with Bitcoin and XRP dominating both investment and trading activity.

 

Delhi NCR contributed 7.4 per cent, pointing to a mature and diversified investor base. Investors in the capital followed a disciplined core strategy, complemented by selective higher-risk exposure, with Bitcoin remaining the clear favourite.

Crypto participation broadens across states

Haryana (6 per cent) and Rajasthan (5.9 per cent) showed strong upward momentum, signalling rising confidence among emerging investor communities. West Bengal accounted for 5.3 per cent, while Andhra Pradesh contributed 5 per cent, reflecting steady and methodical participation.

 

Tamil Nadu recorded a 4.9 per cent share, driven by a balanced approach to innovation and disciplined investing. Bihar, at 4.3 per cent, continued to build on its expanding digital adoption curve.

 

“Collectively, these states highlight the broadening and deepening of India’s crypto participation across geographies,” the report said, underscoring how smaller towns have become central to India’s crypto growth story in 2025.