KuCoin, a leading cryptocurrency exchange, has released a new report covering cryptocurrency and blockchain adoption in Nigeria. The report revealed that Nigerians are embracing cryptocurrencies by virtue of having limited access to affordable financial services. Cryptocurrencies are thus becoming an alternative solution for the storage and transfer of assets.
According to the report titled: Into The Cryptoverse, 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.
The report also noted that 52% of Nigerian crypto investors allocate over half of their assets to cryptocurrencies. At the same time, 65% of Nigerian crypto investors make fiat deposits to cryptocurrencies via peer-to-peer trading.
Another important finding is that 70% of Nigerian crypto investors intend to increase their cryptocurrency investments over the next 6 months, giving reasons to believe that digital asset adoption in the country is accelerating.
The report noted that such rates of adoption could be attributed to the fact that the Nigerian currency, Naira, has depreciated by over 209% in the past six years.
“With national inflation rates climbing to their highest point since 2008, the challenging economic climate in Nigeria was worsened by the COVID-19 pandemic, making cryptocurrencies an attractive alternative source of income, particularly in the bullish market in 2021,” the report noted.
Further insights from the report showed that Nigerian crypto investors allocate an average of 60% of their portfolios to cryptocurrencies, followed by cash/bank deposits (20%) and foreign currencies (7%), and other instruments. 52% of Nigerian crypto investors allocate over half of their investments to cryptocurrencies, while so-called “super crypto investors”, which account for 22% of total crypto investors in the country, allocate over 90% of their investment portfolios to cryptocurrencies.
Cryptocurrency adoption rate increases in Nigeria are also evident from the previous report, according to KuCoin data, which identified that the average number of monthly transactions across African countries has shown a 1,386.7% increase from January 2021 to January 2022, with the number of users also indicating a 2,467.2% spike over the same period.
The KuCoin Into The Cryptoverse report on Nigeria showcases that cryptocurrencies are becoming an important financial instrument in the African country in times of economic hardship as a means of payment and value storage.
