India’s Crypto Adoption May Surge in Tier-2 Cities Like Indore, CoinDCX Data Suggests

• Nearly 40% of new CoinDCX users originate from tier-2 and tier-3 cities, driving broader market participation.

• Indore’s crypto engagement reaches 10% of its population, surpassing Mumbai’s 2-3% adoption rate.

• Gen Z investors, aged 18-25, now represent 37.6% of India’s crypto users, according to CoinSwitch’s Q3 2025 report.

Crypto adoption in tier-2 cities India explodes as Indore hits 10% penetration. Discover how smaller towns are reshaping the market and what it means for investors. Stay ahead—explore now!

What is Driving Crypto Adoption in Tier-2 Cities India?

Crypto adoption in tier-2 cities India is accelerating due to increased financial literacy, accessible mobile apps, and a young demographic familiar with digital payments. Platforms like CoinDCX report 40% of their users from these regions, with Indore exemplifying the trend at nearly 10% population involvement. This movement signifies a democratization of digital assets, extending beyond metro limitations.

How Has Indore Emerged as a Leading Crypto Hub?

Indore’s rise as a crypto hotspot stems from proactive community education and economic stability among its residents. CoinDCX CEO Sumit Gupta noted that close to 10% of Indore’s roughly 3.4 million people are active on the platform, compared to just 2-3% in Mumbai. This adoption is fueled by local offices established in October 2025, enhancing support and trust. Gupta emphasized, “Indore has touched close to 10%,” highlighting how smaller cities leverage UPI integration and fintech apps for seamless entry. Data from CoinSwitch’s India Crypto Portfolio Q3 2025 report supports this, showing tier-2 cities contributing significantly to the 37.6% Gen Z investor share nationwide. Financial consultant Sudeep Saxena adds, “People in smaller cities view digital assets as flexible options for higher returns.” With average investor ages at 30-35, these users prioritize long-term stability over speculation. Botad in Gujarat, with a population of 13 lakh, also ranks in the top 10 for crypto activity, ahead of larger centers like Ahmedabad. This pattern underscores a nationwide shift, where non-metros like Jaipur, Lucknow, and Patna see volumes rising 25-30% year-over-year, per industry observations.

CoinDCX CEO Sumit Gupta said 40% of users now come from smaller cities, with Indore seeing crypto adoption reach nearly 10% of its population.

For years, India’s crypto story was seen as a metro phenomenon, buzzing in Bengaluru cafés, Mumbai offices, and Delhi’s fintech circles. But that narrative is changing fast. The next wave of growth, it turns out, is rising from cities you wouldn’t expect — Indore, Jaipur, Lucknow, and even smaller towns like Botad.

CoinDCX CEO Sumit Gupta says the data tells the story. “Nearly 40% of CoinDCX’s users now come from tier-2 and tier-3 cities,” he revealed recently, adding that Indore alone has become one of the most active smaller cities in India, with close to 10% of its population, roughly 3.4 lakh people, dealing in digital assets on the platform. 

“In Mumbai, only 2 to 3% of the population is investing in crypto, but Indore has touched close to 10%,” Gupta said.

The exchange, which claims a dominant share of India’s crypto market with over two crore investors, opened its new Indore office in October to strengthen its presence beyond the metros. 

The average age of investors on the platform, Gupta added, is between 30 and 35 years older and more financially stable than the stereotype of the impulsive young trader.

Frequently Asked Questions

What Factors Are Boosting Crypto Adoption in Tier-2 Cities India?

Crypto adoption in tier-2 cities India benefits from widespread UPI usage, affordable smartphones, and educational initiatives by exchanges. Gen Z’s comfort with digital tools drives 37.6% participation, while stable economic conditions in places like Indore encourage experimentation with assets like Bitcoin for diversified returns.

Why Is Indore Leading Crypto Adoption Among Smaller Indian Cities?

Indore leads due to strong local engagement and platform accessibility, with 10% of its population involved in crypto trading. This natural progression, supported by CoinDCX’s regional office, reflects younger demographics’ familiarity with fintech, making digital assets a straightforward investment choice read aloud smoothly.

Key Takeaways

• Tier-2 Surge: Nearly 40% of CoinDCX users from non-metro areas signal inclusive growth in India’s crypto ecosystem.
• Indore’s Edge: At 10% adoption, Indore outperforms Mumbai, driven by community-focused expansions and digital natives.
• Regulatory Push: Balanced policies could unlock $1.1 trillion by 2032; industry leaders urge swift action for sustained innovation.

Conclusion

Crypto adoption in tier-2 cities India, exemplified by Indore’s 10% penetration, marks a pivotal evolution toward widespread financial participation. With Gen Z leading at 37.6% and global investments bolstering platforms, the sector matures beyond metros. As regulations clarify within two years, expect even greater inclusion—investors should monitor these trends for emerging opportunities in digital assets.

The rise of the non-metro investor

Indore’s crypto enthusiasm isn’t an isolated case; it reflects a larger trend across India’s smaller cities. CoinSwitch’s India Crypto Portfolio Q3 2025 report shows that Gen Z investors (aged 18–25) have now overtaken millennials as the country’s largest crypto investor group, accounting for 37.6% of users. 

Millennials, between 26 and 35 years old, are close behind, making up about 37.3% of India’s crypto investors, while those in the 36 to 45 age group account for around 17.8%.

For Gen Z, though, crypto is second nature. They’ve grown up paying with UPI, scrolling through fintech apps, and managing money on their phones. For many of them, buying Bitcoin or Ethereum feels as normal as putting money into a mutual fund.

Financial consultant Sudeep Saxena believes the mindset in non-metros is also changing. “People in smaller cities are viewing Virtual Digital Assets as safer and more flexible than before. They are more willing to experiment, and crypto offers that possibility of higher returns that traditional options don’t,” he said.

CoinSwitch data reinforces this. Delhi, Bengaluru, and Mumbai still lead by overall volumes, but smaller cities like Jaipur, Lucknow, and Patna are catching up quickly. In fact, Gujarat’s Botad, a town of just 13 lakh people, ranked among the top 10 Indian cities for crypto investors last year, ahead of larger urban centres like Ahmedabad and Surat.

India’s crypto push: From Indore to global ambitions

CoinDCX’s journey reflects the larger shift in India’s crypto landscape. After taking over Dubai-based BitOasis in 2024 to strengthen its presence across the Middle East and North Africa, the company got another big boost this October when U.S.-listed crypto giant Coinbase invested at a valuation of $2.45 billion.

Sumit Gupta says the fresh funding will help CoinDCX build new products, attract more users, and expand further into Southeast Asia. “With the fresh investment, the idea is to go deeper into launching new products and educational tools. We cannot build hundreds of applications, so we will build platforms that allow developers to create their own,” he explained.

He also reiterated the company’s push for a more balanced tax regime for digital assets. “A rationalised tax structure will make India more competitive globally,” Gupta said, referring to the current 30% flat tax on crypto gains and the 1% TDS on transactions, policies that many believe are holding back the market.

A shift in global perception

Even the global giants are paying attention now. Binance CEO Richard Teng recently told CNBC that India has all the right ingredients to become a global crypto superpower, a young, tech-savvy population, strong fintech networks, and one of the fastest-growing digital economies.

He noted that India’s digital foundation, from UPI and Aadhaar to its booming fintech scene, has already built the base for what could be the next big wave in blockchain. With initiatives like the National Blockchain Strategy taking shape, Teng believes India is well placed to lead in areas like stablecoins, DeFi, and NFTs.

“India is a very important market — the largest demographic in the world, very tech-savvy, very young,” he said. “In every country with a young demographic, crypto adoption tends to be the fastest. India is no different.”

The regulatory road ahead

Despite this optimism, the industry continues to face uncertainty. Speaking at the Business Standard BFSI Insight Summit in Mumbai, Gupta warned that “running an exchange in India has been a nightmare because of uncertainty.” 

He added that “ninety percent of my friends, talented IIT graduates, have moved abroad,” stressing the urgency of regulation to keep talent and innovation within India.

Dilip Chenoy, Chairperson of the Bharat Web3 Association, noted that the delay in domestic regulation could cost India a $1.1 trillion opportunity by 2032. “Eighteen of the G20 nations already have some form of crypto regulation,” he said. “India took the lead globally to push for a framework; now it’s time to act on it domestically.”

Still, Gupta remains cautiously optimistic: “India is opening up gradually, and I see the country coming up with full-fledged digital-asset regulation within two years.”

From hype to habit

The story of crypto in India is no longer about speculative frenzy, its about participation and maturity. Platforms are expanding education programs and local support in smaller towns, targeting first-time investors. The average holding period for Indian users is lengthening, and trading volumes, while volatile, have stabilised post-tax reforms.

Most importantly, this shift is no longer confined to cosmopolitan elites. Indore, a city better known for its cleanliness drives and food culture, is now quietly rewriting India’s crypto geography.

As Gupta summed up on X recently: “If you thought India’s growth story was happening only in metro cities, think again. Nearly 40% of new CoinDCX users are coming from tier-2 and tier-3 cities. Even in crypto adoption, Indore is now ahead of Mumbai.”

That one post captures the larger truth: India’s next crypto chapter is being written not in skyscrapers, but in small offices, co-working spaces, and living rooms across towns like Indore. The centre of gravity has shifted, and the future of Indian crypto may very well belong to its non-metros.

Also Read: India’s Amravati Adopts Blockchain for Smart Governance