India's crypto crowd is getting younger: Gen Z drives 50% of new users

India’s crypto market is seeing a noticeable change in who is joining the space. Younger investors are increasingly showing interest in digital assets, while smaller cities are also making up a larger share of new users.

More than 1.2 lakh new users joined the platform in the first half of 2026, with the 18-24 age group, or Gen Z, accounting for around 50% of new registrations, according to the 'The State of Crypto in India: H1 2026 Review & H2 Outlook' report by ZebPay.advertisement❮❯ Read Full StoryGEN Z ACCOUNTS FOR HALF OF NEW USERSThe strong participation from Gen Z is one of the key findings of the report. The data suggests that crypto is gaining traction among younger investors, who are increasingly exploring digital assets as part of their investment choices.

Gen Z users also showed a clear preference for buying rather than selling. Their buy volumes were nearly 10 times higher than their sell volumes during the first half of the year.

Solana emerged as the most preferred digital asset among this group.SMALLER CITIES ARE DRIVING PARTICIPATION

The shift is not only about age. Investors from smaller cities are also playing a bigger role in India's crypto market.

Tier-2 and Tier-3 markets together accounted for around 62% of new registrations on ZebPay during H1 2026. Tier-3 markets alone contributed nearly 21% of new registrations.

The report also found that Tier-3 markets were the only segment to record an increase in the average spot order size during the period.

Further, it suggests that many users are taking a longer-term approach instead of frequently buying and selling digital assets.

Around 63% of users held crypto without making any trades during H1 2026. Another 29% continued trading while also holding crypto assets.

The data also showed a clear link between regular participation and trading activity. Users who remained active throughout all six months generated around 21 times the trading volume of those who were active for only one month.BITCOIN STILL A MAJOR CHOICE

While Gen Z showed a strong preference for Solana, Bitcoin continued to have a major presence among investors.

Bitcoin Maximalists made up the largest investor group, accounting for 30% of users. They were followed by Legacy Altcoin Holders at 17.3% and Diversified Explorers at 15%.

The report also found that around 85% of active users participated in spot markets, while about 72% used at least two platform features.USDT REMAINS THE TOP TRADING PAIR

USDT continued to be the most-used trading pair during H1 2026.

Bitcoin, Ethereum, XRP and Solana were among the other top five assets by spot trading activity. Layer-1 assets accounted for nearly 90% of categorised trading volume, while memecoins had the second-highest trader participation.CRYPTO PARTICIPATION IS SPREADING

The findings point to a crypto user base that is becoming broader in terms of age and location. Younger users are joining in large numbers, while investors from Tier-2 and Tier-3 cities are accounting for a significant share of new registrations.

Rahul Pagidipati, Chief Executive Officer, ZebPay, said the first half of 2026 showed a growing focus among Indian investors on diversification and long-term wealth creation.

Raj Karkara, Chief Operating Officer, ZebPay, said the data showed that Indian crypto investors were becoming more purposeful in their participation, with greater use of different products and a focus on longer-term financial goals.

In other words, with Gen Z and investors from smaller cities joining in large numbers, India’s crypto market appears to be reaching a wider and more diverse audience.- Ends

Jasmine Anand is a Senior Reporter (Emerging Tech) at India Today. With over 15 years of experience, she has earlier worked as a Financial Journalist in a multinational equity research firm, tracking equities, stock market, economy, IPOs and market-moving stories. Jasmine's forte is to scribe meticulously complex facts and figures into lucid and interesting reads. In her leisure time, she loves binging on movies and is passionate about painting, calligraphy, arts and crafts.