T
Temitope Akintade
Guest
The latest report from blockchain analytics firm Chainalysis has placed Nigeria in the second spot on the list of countries leading crypto adoption globally.
Also, the Chainalyisis report, titled the 2024 Geography of Cryptocurrency Report, says Nigeria received around $59 billion worth of crypto between July 2023 and June 2024. Other African countries that made the list include Ethiopia, Kenya, and South Africa who all clinched a spot in the top 30.
It is noteworthy that Nigeria achieved this feat despite the fact that 2024 has been a year of clampdown on crypto companies as well as users in the country. Shutdown and restrictions of crypto companies like Binance, OKx, KuCoin and others have done just little to deter the country’s crypto enthusiasts from trading in digital currencies if the Chainalysis report released this October, is anything to go by.
bitcoin symbol in the map of Africa
Related post:
Court orders crypto company to pay N140m to EFCC for illegal USDT/Naira transaction
According to Chainalysis, the Global Crypto Adoption Index is made up of four sub-indexes, each of which is based on countries’ usage of different types of cryptocurrency services. The firm says to calculate sub-indexes, it estimates countries’ transaction volumes for different types of crypto services and protocols based on the web traffic patterns of those services’ and protocols’ websites.
The report says the Central & Southern Asia and Oceania (CSAO) dominates the 2024 Index, with seven of the top 20 countries located in the region. India clinches the top spot, while Nigeria follows. Indonesia, the United States and Vietnam fill the second, third and fourth spots respectively. Other countries in the top ten are Ukraine, Russia, the Philippines, Pakistan, Brazil, and Turkey.
African countries behind Nigeria in the top 30 are Ethiopia (26), Kenya (28), and South Africa (30).
Chainalysis says Sub-Saharan Africa accounts for the global crypto economy’s smallest share, representing 2.7% of transaction volume worldwide between July 2023 and June 2024 — a reflection of the region’s smaller aggregate gross domestic product relative to other regions.
Nonetheless, Sub-Saharan Africa saw modest growth, receiving an estimated $125 billion in on-chain value during this period, a $7.5 billion increase compared to last year. The report says Africans are leveraging crypto for business payments, as a hedge against inflation, and for more frequent, smaller (i.e. retail-sized) transfers.
Image Credit: ZeroCap
Also, it is noteworthy that the region is said to be leading globally in DeFi adoption, a drive credited to a growing need for accessible financial services in a region where only 49% of adults had a bank account as of 2021, according to the World Bank.
Read also:
Tigran Gambaryan: Nigerian authorities drop all charges against Binance executive after 8 months
Importantly, it is said that stablecoins have become a key element of Sub-Saharan Africa’s crypto economy.
“In countries where local currencies are highly volatile and access to U.S. dollars is limited, dollar-pegged stablecoins like USDT and USDC have gained traction, offering businesses and individuals alike a reliable way to store value, facilitate international payments, and support cross-border trade. Stablecoins now account for approximately 43% of the region’s total transaction volume.” – Chainalysis 2024 Geography of Cryptocurrency Report,
Occupying the second spot globally, Nigeria’s crypto activity is largely driven by smaller denomination retail and professional-sized transactions, with around 85% of the value of transfers received under $1 million, according to Chainalysis.
Bitcoin.
The report says Nigeria is ground zero for crypto activity in Sub-Saharan Africa and in recent years, the country has emerged as a global leader in crypto adoption, driven by innovative use cases to combat economic challenges.
“Ranking second overall on our global adoption index, the country received approximately $59 billion in cryptocurrency value between July 2023 and June 2024,” the report noted.
It is telling that the report says Nigeria’s crypto activity is largely driven by smaller denomination retail and professional-sized transactions, with around 85% of the value of transfers received under $1 million. This shows that the country still lacks institutional investors in the crypto industry.
Chainalysis said a significant number of Nigerians rely on stablecoins to send money across borders due to the inefficiencies and high costs associated with traditional remittance channels. Other factors behind the high adoption rate include the biting inflation and the depreciation of the naira – which plummeted to a record low in February 2024.
The post Despite clampdown, Nigeria emerges 2nd in global crypto adoption – Chainalysis first appeared on Technext.
Also, the Chainalyisis report, titled the 2024 Geography of Cryptocurrency Report, says Nigeria received around $59 billion worth of crypto between July 2023 and June 2024. Other African countries that made the list include Ethiopia, Kenya, and South Africa who all clinched a spot in the top 30.
It is noteworthy that Nigeria achieved this feat despite the fact that 2024 has been a year of clampdown on crypto companies as well as users in the country. Shutdown and restrictions of crypto companies like Binance, OKx, KuCoin and others have done just little to deter the country’s crypto enthusiasts from trading in digital currencies if the Chainalysis report released this October, is anything to go by.
bitcoin symbol in the map of Africa
Related post:
Court orders crypto company to pay N140m to EFCC for illegal USDT/Naira transaction
More on the Chainalysis report
According to Chainalysis, the Global Crypto Adoption Index is made up of four sub-indexes, each of which is based on countries’ usage of different types of cryptocurrency services. The firm says to calculate sub-indexes, it estimates countries’ transaction volumes for different types of crypto services and protocols based on the web traffic patterns of those services’ and protocols’ websites.
The report says the Central & Southern Asia and Oceania (CSAO) dominates the 2024 Index, with seven of the top 20 countries located in the region. India clinches the top spot, while Nigeria follows. Indonesia, the United States and Vietnam fill the second, third and fourth spots respectively. Other countries in the top ten are Ukraine, Russia, the Philippines, Pakistan, Brazil, and Turkey.
Crypto adoption in Sub-Saharan Africa
African countries behind Nigeria in the top 30 are Ethiopia (26), Kenya (28), and South Africa (30).
Chainalysis says Sub-Saharan Africa accounts for the global crypto economy’s smallest share, representing 2.7% of transaction volume worldwide between July 2023 and June 2024 — a reflection of the region’s smaller aggregate gross domestic product relative to other regions.
Nonetheless, Sub-Saharan Africa saw modest growth, receiving an estimated $125 billion in on-chain value during this period, a $7.5 billion increase compared to last year. The report says Africans are leveraging crypto for business payments, as a hedge against inflation, and for more frequent, smaller (i.e. retail-sized) transfers.
Image Credit: ZeroCap
Also, it is noteworthy that the region is said to be leading globally in DeFi adoption, a drive credited to a growing need for accessible financial services in a region where only 49% of adults had a bank account as of 2021, according to the World Bank.
Read also:
Tigran Gambaryan: Nigerian authorities drop all charges against Binance executive after 8 months
Importantly, it is said that stablecoins have become a key element of Sub-Saharan Africa’s crypto economy.
“In countries where local currencies are highly volatile and access to U.S. dollars is limited, dollar-pegged stablecoins like USDT and USDC have gained traction, offering businesses and individuals alike a reliable way to store value, facilitate international payments, and support cross-border trade. Stablecoins now account for approximately 43% of the region’s total transaction volume.” – Chainalysis 2024 Geography of Cryptocurrency Report,
Nigeria leading the way
Occupying the second spot globally, Nigeria’s crypto activity is largely driven by smaller denomination retail and professional-sized transactions, with around 85% of the value of transfers received under $1 million, according to Chainalysis.
Bitcoin.
The report says Nigeria is ground zero for crypto activity in Sub-Saharan Africa and in recent years, the country has emerged as a global leader in crypto adoption, driven by innovative use cases to combat economic challenges.
“Ranking second overall on our global adoption index, the country received approximately $59 billion in cryptocurrency value between July 2023 and June 2024,” the report noted.
It is telling that the report says Nigeria’s crypto activity is largely driven by smaller denomination retail and professional-sized transactions, with around 85% of the value of transfers received under $1 million. This shows that the country still lacks institutional investors in the crypto industry.
Chainalysis said a significant number of Nigerians rely on stablecoins to send money across borders due to the inefficiencies and high costs associated with traditional remittance channels. Other factors behind the high adoption rate include the biting inflation and the depreciation of the naira – which plummeted to a record low in February 2024.
The post Despite clampdown, Nigeria emerges 2nd in global crypto adoption – Chainalysis first appeared on Technext.