Kerala’s distinct crypto profile: High participation, low exposure

In South India’s crypto map for 2025, Kerala stands out for a reason that is easy to miss if one looks only at headline volumes. The State does not dominate trading value, nor does it host the largest number of traders. What it does show, clearly and consistently, is broad participation combined with financial caution. This is a pattern that sets it apart from more capital-heavy markets.

According to research by Giottus from January to December 2025, Kerala accounts for 5.25 percent of India’s third-largest crypto exchange's 1.2 million customer base in the five-state dataset (Kerala, Tamil Nadu, Karnataka, AP, and Telangana). This is a modest figure compared to Tamil Nadu’s scale. Yet behaviourally, Kerala is among the most active trading markets in the region.

As many as 82.9% of participants are classified as active traders, the highest share among the five southern states, while only 17.1% fall into the long-term holding category. This skew suggests frequent engagement with crypto markets, even if capital deployment remains restrained.

That restraint is visible in the liquidity data. Kerala records the lowest fiat deposits per customer among the five states and also the lowest crypto withdrawal per customer. In simple terms, users here trade often, but with smaller ticket sizes. Crypto participation in Kerala appears less about large speculative positions and more about regular, lower-value engagement.

“Kerala’s data tells a very clear story of participation before scale,” said Vikram Subburaj, CEO of Giottus. “Users here are engaging frequently, but with smaller ticket sizes. That combination usually reflects a market where awareness is high, comfort with the technology exists, but risk exposure is still being calibrated carefully,” he said.

Access factor
Economic indicators help explain this profile. Kerala’s per capita income (₹3.1 lakh per year) is lower than that of Karnataka, Telangana, and Tamil Nadu. But the dataset shows that income has almost no correlation with trading volume across South India. What matters more is access. Kerala’s urbanisation rate of 47.7%, second only to Tamil Nadu, places it firmly in the high-access bracket. Also, urbanisation shows a moderate positive correlation with trade volume.

“What stands out is that income does not explain Kerala’s crypto behaviour as much as access does. With high urbanisation and digital familiarity, participation comes easily. Capital commitment, however, follows its own rhythm. And, Kerala’s numbers show a preference for steady engagement rather than aggressive positioning,” Vikram said.

More democratised
This combination of high access, high engagement, but low capital intensity gives Kerala a distinct market character. Unlike Karnataka, which shows a higher proportion of long-term holders, or Tamil Nadu, which combines participation with scale, Kerala’s crypto market looks democratised. Participation is spread across many users rather than concentrated in a smaller, capital-heavy cohort.

Mass-market financial tool
The data also reveals a near-perfect correlation between trade volume and the number of traders. This reinforcing the idea that activity in Kerala is driven by people, not by a handful of large accounts. Crypto here behaves less like an elite investment product and more like a mass-market financial tool which is accessed frequently but cautiously.

Viewed in this light, Kerala’s relatively low trading volumes are not a weakness. It is a reflection of the fact that the market that prioritises engagement over exposure. The takeaway is clear: Kerala is not sitting out the crypto economy. It is participating on its own terms. The participation is wide, active, and with measured risk.