Ten Indian cities account for 60 per cent of cryptocurrency investors, according to a report released by Indian cryptocurrency exchange CoinDCX.
While Delhi, Mumbai, Calcutta, Bangalore, Hyderabad and Ahmedabad are the major investor locations, Tier 2 cities are warming up to cryptocurrencies at a rapid pace.
Global blockchain data platform Chainanalysis said India is the second largest market in terms of transaction volume (after the US), surpassing the UK, Turkey and Russia.
“2023 witnessed a remarkable shift in the Indian crypto landscape, with Tier-2 cities such as Lucknow and Patna emerging as surprising frontrunners in adoption," the CoinDCX report said.
"These cities along with Jaipur, Indore, Bhubaneswar and Ludhiana, all ranked among the top 15, defying the perception of major urban centres dominating the traditional financial investment space.”
The average age of CoinDCX investors is on the rise — to 30 this year from 25 in 2022.
Further classification shows a ratio of seven male to every one female investor, with Delhi and Lucknow in the lead.
As per the 2023 Geography of Cryptocurrency Report by Chainanalysis, India registered approximately $269 billion in crypto volumes between July 2022 and June 2023, despite a 30 per cent tax on gains.
The trend has also subsequently persisted with CoinDCX registering a 75 per cent growth in trading volume in November over October.
“November 9, 2023, witnessed the highest trading volume of the year, attributed to Bitcoin’s remarkable milestone, surging to a new high of $36,000. Bitcoin crossed the threshold for the first time in 2023, contributing to the global market cap reaching $1.37 trillion,” CoinDCX said.
“Looking ahead to 2024, our vision is to become a global Web3 leader, pioneering advancements in Web3 finance. We will align with key Web3 trends, focussing on lending, derivatives and institutional offerings. India remains central to our focus, with compliance, user experience, and international alignment as cornerstones,” said Sumit Gupta, co-founder of CoinDCX.
