According to a study by cryptocurrency exchange KuCoin, 35% of Nigerians between the ages of 18 and 60 have traded or owned cryptocurrencies in the last six months.
Analysts of the company in their report Into the Cryptoverse Report note that a total of 33.4 million Nigerians dealt with digital assets. At the same time, more than half of them (52% or 17.36 million) invested more than half of their savings in crypto assets.
Cryptocurrencies are popular due to the lack of developed Nigerian fintech services and companies. In addition, the high inflation of the Nigerian naira is forcing the country’s residents to look for more reliable assets. Over the past two years, the naira has fallen by 209%, so bitcoin and other cryptocurrencies have become a savings tool.
The KuCoin exchange analysts call the most popular way to trade cryptocurrencies a direct exchange between the participants in the transaction. 70% of respondents emphasized that they plan to increase investments in digital assets in the next six months.
Interestingly, more than a quarter of cryptocurrency owners first invested in bitcoin and other coins no more than six months ago. The popularity of investing in digital assets was ensured by the “bullish trend” in 2021, when the rate of the first cryptocurrency reached record highs.
Recall that last year the Central Bank of Nigeria launched the state cryptocurrency eNaira. The President of the country, Muhammadu Buhari, expects that the national digital currency will increase the country’s GDP by $29 billion in the next ten years. At the same time, IMF officials believe that eNaira can be used for money laundering and terrorist financing.
