Nigeria's cryptocurrency exchanges have soared to an astonishing $56.7 billion, propelled by the debilitation of the nation's currency and the relentless rise in inflation. Over the period spanning from July 2022 to June 2023, Nigeria witnessed a remarkable 9% year-on-year surge in cryptocurrency transactions, culminating in the staggering total of $56.7 billion. This surge can be unequivocally attributed to the severe challenges posed by the devaluing currency and the escalating inflation rate.
Conversely, Kenya experienced a substantial decline in its cryptocurrency landscape, with the utilization of digital currencies plummeting by more than half to a mere $8.4 billion. In stark contrast, Nigeria, the largest economy in Africa, is witnessing an upsurge in the adoption of cryptocurrencies, primarily due to the arduous challenges posed by a weakening domestic currency and the relentless march of inflation.
A recent comprehensive report by the blockchain research powerhouse, Chainalysis, has unveiled some remarkable insights. It revealed that Nigeria, during the period from July 2022 to June 2023, witnessed an impressive 9% year-on-year expansion in cryptocurrency transactions, aggregating to an astonishing $56.7 billion. This surge stands as a testament to the burgeoning interest in digital currencies within the nation.
Meanwhile, Uganda, though not as prominent in this context as some other markets, experienced robust growth. The realm of cryptocurrency transactions in Uganda witnessed an astonishing surge of 245%, amassing a total of $1.6 billion during the same period. This exemplifies the dynamic nature of cryptocurrency markets in different regions.
In stark contrast, Kenya experienced a significant downturn, with cryptocurrency usage plunging by more than half to a paltry $8.4 billion. According to the insights provided by the blockchain research firm, Nigerians exhibited a heightened interest in Bitcoin and stablecoins, particularly during the most tumultuous periods in June and July of 2023 when the value of the naira plummeted.
The depreciation of the national currency reached unprecedented depths following President Bola Tinubu's ambitious and far-reaching economic reforms. These reforms included the abolishment of long-standing, costly petroleum subsidies and the removal of certain exchange rate restrictions.
In the past month, Nigeria's inflation rate reached its zenith, surging for the eighth consecutive month and peaking at an 18-year high of 25.8%. In response to these tumultuous economic developments, Moyo Sodipo, the co-founder of the Nigeria-based cryptocurrency exchange, Busha, astutely observed, "Individuals are constantly in search of potential opportunities to safeguard themselves against the devaluation of the naira and the persistent economic deterioration, which has been exacerbated by the effects of the COVID-19 pandemic."
Nigeria's cryptocurrency exchanges have soared to an astonishing $56.7 billion, propelled by the debilitation of the nation's currency and the relentless rise in inflation. Over the period spanning from July 2022 to June 2023, Nigeria witnessed a remarkable 9% year-on-year surge in cryptocurrency transactions, culminating in the staggering total of $56.7 billion. This surge can be unequivocally attributed to the severe challenges posed by the devaluing currency and the escalating inflation rate.
Conversely, Kenya experienced a substantial decline in its cryptocurrency landscape, with the utilization of digital currencies plummeting by more than half to a mere $8.4 billion. In stark contrast, Nigeria, the largest economy in Africa, is witnessing an upsurge in the adoption of cryptocurrencies, primarily due to the arduous challenges posed by a weakening domestic currency and the relentless march of inflation.
A recent comprehensive report by the blockchain research powerhouse, Chainalysis, has unveiled some remarkable insights. It revealed that Nigeria, during the period from July 2022 to June 2023, witnessed an impressive 9% year-on-year expansion in cryptocurrency transactions, aggregating to an astonishing $56.7 billion. This surge stands as a testament to the burgeoning interest in digital currencies within the nation.
Meanwhile, Uganda, though not as prominent in this context as some other markets, experienced robust growth. The realm of cryptocurrency transactions in Uganda witnessed an astonishing surge of 245%, amassing a total of $1.6 billion during the same period. This exemplifies the dynamic nature of cryptocurrency markets in different regions.
In stark contrast, Kenya experienced a significant downturn, with cryptocurrency usage plunging by more than half to a paltry $8.4 billion. According to the insights provided by the blockchain research firm, Nigerians exhibited a heightened interest in Bitcoin and stablecoins, particularly during the most tumultuous periods in June and July of 2023 when the value of the naira plummeted.
The depreciation of the national currency reached unprecedented depths following President Bola Tinubu's ambitious and far-reaching economic reforms. These reforms included the abolishment of long-standing, costly petroleum subsidies and the removal of certain exchange rate restrictions.
In the past month, Nigeria's inflation rate reached its zenith, surging for the eighth consecutive month and peaking at an 18-year high of 25.8%. In response to these tumultuous economic developments, Moyo Sodipo, the co-founder of the Nigeria-based cryptocurrency exchange, Busha, astutely observed, "Individuals are constantly in search of potential opportunities to safeguard themselves against the devaluation of the naira and the persistent economic deterioration, which has been exacerbated by the effects of the COVID-19 pandemic."
It is worth noting that in 2021, Nigeria imposed a blanket ban on banks and financial institutions from engaging in or facilitating cryptocurrency transactions. However, the nation's youthful and tech-savvy population ingeniously turned to alternatives, such as peer-to-peer trading platforms provided by cryptocurrency exchanges, to circumvent the constraints imposed by the financial sector's ban.
A recent survey has unveiled Nigeria as the most cryptocurrency-savvy nation in the world. Last year, the country's financial regulators issued a set of guidelines for digital assets, indicating Nigeria's pursuit of a balanced approach between an outright ban on cryptocurrency assets and their unregulated usage.
Nigeria's youthful and tech-savvy populace has eagerly embraced digital currencies, utilizing peer-to-peer trading platforms offered by cryptocurrency exchanges as a means to navigate the challenges posed by the financial sector's restrictions.
🌐 Sources
blockchair.com - Nigeria's Crypto Adoption Continues To Surge Amid Economic Challenges
globalfinancialdigest.com - Cryptocurrency Adoption Surges In Nigeria Amid Economic...