As per the study by crypto exchange KuCoin, Nigerians are entering the crypto space due to a lack of affordable financial services and high inflation rates, with 35% of them having entered this sector in the last six months.
According to KuCoin, cryptocurrencies are filling a void in the traditional currency-based market because Nigerians are using them as a means of subtitute for storing and transferring assets.
According to the report:
“33.4 million Nigerians, which accounts for 35% of the population aged 18 to 60, currently own cryptocurrencies or have traded cryptocurrencies over the past 6 months.”
Peer-to-peer (P2P) is a popular strategy among Nigerians, as 65 percent of the country’s crypto investors made fiat deposits to cryptocurrencies via P2P platforms. Furthermore, 52% of Nigerian cryptocurrency investors have stored half of their assets in cryptocurrencies.
Nigeria’s high inflation rates have caused the national currency, the Naira, to depreciate by more than 209% in the last six years.
As a result, cryptocurrencies have become alternative sources of income, particularly in the bullish market of 2021, when Bitcoin (BTC) reached an all-time high (ATH) of $69,000 in November.
Nigeria has made a name for itself in the crypto space, As it become the first African country to launch a central bank digital currency (CBDC) in October of last year.
This CBDC would also be Nigeria’s only legal tender digital currency, accepted alongside physical cash and accompanied by an official mobile wallet application.
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No effect of banning crypto in Nigeria, P2P bitcoin trading rise by 15 percent
