India’s crypto map is changing. A CoinSwitch year-end report for 2025 shows that crypto activity has shifted decisively away from major metros. Now, smaller cities account for the lion’s share of transactions and new investors. According to CoinSwitch, Tier-2 cities made up 32.2% of its user base. Meanwhile, Tier-3 and Tier-4 towns contributed 43.4%. As a result, non-metro India is responsible for over 75% of crypto activity on the platform.
Key findings: Bharat leads the next phase of adoption
CoinSwitch’s “India’s Crypto Portfolio: How India Invests” report, published December 15, 2025, highlights several headline takeaways. Non-metro regions (Tier-2/3/4) collectively contribute more than three-quarters of platform activity. Uttar Pradesh emerged as the top state by invested value (about 13%). Also, large-cap tokens regained prominence in many portfolios. These geographic shifts indicate that crypto adoption is now spreading into smaller towns and regional markets across India.
What’s changing in investor behaviour?
The report shows a move from speculative meme-coin trading toward more conviction-led allocations in established cryptocurrencies. Bitcoin, in particular, regained the top spot as the most-invested asset on CoinSwitch in 2025. It overtook Dogecoin, a sign that many users are reallocating into assets perceived as store-of-value or long-term plays.
Demographics: youth and widening participation
Demographically, the market remains youth-driven. Investors under 35 continue to make up a large majority of platform users. The CoinSwitch findings also point to gradual increases in female participation in some states. This is an early indication that the investor base is diversifying beyond the earlier metro-based, male-dominated profile.
Why are smaller cities rising
Several structural forces explain the shift. Greater smartphone penetration and lower data costs are key factors. Additionally, targeted local marketing and educational outreach by exchanges enhance accessibility. Growing financial literacy in smaller towns has reduced the access barrier. In addition, improving on-ramps (UPI integrations, localized payment rails) help. Regional offices or campaigns by exchanges have made buying and learning about crypto easier outside metros. Industry commentary in the CoinSwitch report suggests this trend mirrors broader retail participation in India’s equity markets.
Market implications and what to watch
For policymakers, exchanges and projects, an India that increasingly transacts from Tier-2 and Tier-3 towns means product design and education must be localized. Simpler UX, vernacular content, and fraud-prevention outreach will matter more. Investors and startups should watch state-level patterns (for example, Uttar Pradesh’s outsized share) and the continued rise of large-cap assets. This is crucial if they’re building user acquisition or product strategies for 2026.
Notes on sources and accuracy
This article is based on various annual reports and contemporaneous coverage by major Indian business outlets. Key figures (32.2% Tier-2; 43.4% Tier-3/4; Uttar Pradesh ~13%; bitcoin regaining top spot) are drawn from the reports.
