India’s Favorite Cryptocurrencies: 2024 Trends And Insights

India’s cryptocurrency market has grown substantially in 2024, with an increasing number of investors diversifying their portfolios. CoinSwitch’s India’s Crypto Portfolio 2024: How India Invests report sheds light on key trends shaping the country’s crypto ecosystem. The year has witnessed a rising interest in digital assets across all sectors, from meme coins to established tokens, with a significant shift towards decentralization and blockchain scalability.

Meme Coins and Established Cryptos Continue to Dominate

According to the report, meme coins have taken center stage in India’s crypto investments. Representing 13 per cent of all crypto investments, meme coins like Dogecoin (DOGE), PEPE, and BONK have attracted attention due to their high return potential. Dogecoin continues to lead the pack, claiming 55 per cent of meme coin investments, but the PEPE token emerged as the top performer, yielding a 1373 per cent return in 2024, far surpassing Solana’s returns last year.

While meme coins dominate in terms of investor attention, Bitcoin (BTC) and Ethereum (ETH) remain crucial players in Indian portfolios, securing 7 per cent and 6 per cent of total investments, respectively. By surpassing $100,000, Bitcoin also accomplished a significant milestone proving its resilience and allure as a long-term investment option.

Investor Trends and Shifting Focus

Indian investors are still interested in a variety of tokens. The dominant position of Layer-1 tokens, accounting for 37 per cent of all investments, is maintained by Bitcoin, Ethereum, and XRP, the latter of which gained traction after surpassing a $100 billion market valuation in November. DeFi tokens, which have retained their second spot at 17 per cent, remain a staple for investors exploring decentralized financial systems. Additionally, there is growing enthusiasm for gaming tokens like Axie Infinity (AXS) and Layer-2 solutions such as Arbitrum (ARB), which are gaining traction due to their potential in gaming and scalability.

With 75 per cent of investors being under 35 and female participation increasing to 11 per cent, the report also notes shifting investor demographics that point to the potential for increased diversity. A surge in investing activity during late-night trading hours, primarily on Mondays and Tuesdays, points to a shift towards more flexible trading strategies.

In 2024, India's cryptocurrency sector has expanded dramatically, driven by major cities like Bengaluru, Mumbai, and Delhi-NCR. The use of cryptocurrencies is also rising in Tier-2 and Tier-3 cities, which is indicative of more national involvement. As the industry grows, these cities will continue to drive India's adoption of cryptocurrencies.