Crypto trading volumes in India soared to $1.9 billion in the fourth quarter of 2024, more than doubling from the previous quarter, as investors in smaller cities sought new income sources amid stagnant job growth and low wages, according to a Reuters report.
With tighter stock market regulations and a growing interest in digital assets, more retail traders are turning to cryptocurrencies. Edul Patel, co-founder of Mudrex, an Indian crypto exchange, noted that many young Indians, who once focused on stocks and derivatives, are now increasingly looking to crypto as an alternative investment. “Especially with Trump becoming the U.S. president and the entire flavor of crypto changing globally,” Patel added.
Smaller Cities Lead the Charge in Crypto Adoption
Retail investors are driving the surge in crypto trading, with smaller cities such as Jaipur, Lucknow, and Pune becoming hotspots for digital asset adoption. These regions are seeing a growing number of people turning to crypto as a way to generate additional income, despite the challenges posed by high taxes and regulatory uncertainty.
India’s crypto market, though facing regulatory hurdles, is projected to exceed $15 billion by 2035, according to Kush Wadhwa, a partner at consulting firm Grant Thornton Bharat. This growth is largely fueled by the increasing participation of retail traders, many of whom are diversifying into crypto amid a sluggish job market.
U.S.-Based Exchanges Eyeing India’s Growing Market
As crypto adoption continues to rise in India, U.S.-based exchanges are keen to capitalize on the trend. Kraken, which was banned in India in 2024 for anti-money laundering violations, is preparing to re-enter the market. Similarly, Coinbase is also exploring a return, despite facing challenges from India’s National Payments Corporation and reports of informal pressure from the Reserve Bank of India.
With the crypto space in India thriving despite regulatory uncertainty, the country is emerging as a key player in the global digital asset market, especially as smaller cities lead the way in crypto adoption.
