Nigeria has the second largest market for cryptocurrencies in Africa in 2022 – Bitget report

A brand new cryptocurrency market report titled, “What Does the Future Hold for Crypto Exchanges,” has revealed that in phrases of the cryptocurrency market dimension in Africa, Nigeria has the second largest market, behind South Africa. The report mentions that South Africans primarily use crypto instead funding, whereas Nigerians use it primarily for financial savings.

The report was achieved by a cryptocurrency trade, Bitget, in partnership with the well-known American administration consulting agency, Boston Consulting Group (BCG) and crypto-centered funding agency, Foresight Ventures. The report dives into the aggressive panorama of crypto exchanges, unveils substantial improvement traits in crypto buying and selling markets, its position in enabling the Web3 economic system and shares insights on how you can navigate the crypto area throughout a bear market.

The report explains that the African continent’s cryptocurrency centralized trade buying and selling accounts for lower than 1% of the spot and spinoff buying and selling seen round the world. It went additional to rank South Africa as #1 on the continent on account of the nation’s “extra superior monetary infrastructure and fiat-to-crypto fee rail.”

In phrases of Africa’s future potential in the cryptocurrency area, the report reads, “We anticipate robust progress in crypto adoption in Africa. However, derivatives might lag given their restricted use in conventional markets.”

Nairametrics was capable of interview Gracy Chen, the Managing Director of Bitget, to get her insights into the African market and its potential for progress.

What have to be achieved in Nigeria to enhance participation in the cryptocurrency area?

Nigeria has been discovered to be the second largest crypto market in Africa following South Africa, nevertheless, the ratio of Nigeria’s inhabitants to crypto adoption is sort of excessive. Crypto penetration in Nigeria is over 40%, greater than conventional banking penetration in the nation. In my opinion, schooling is a key issue to extend participation, as individuals will be part of the crypto area with a greater understanding of cryptocurrencies and their worth and makes use of. So efforts and investments are wanted in crypto schooling for international locations in rising markets like Nigeria to enhance participation, reminiscent of offering dependable instructional sources, studying platforms and communities for crypto-associated subjects.

In phrases of regulation, how badly is the restricted regulatory oversight of the crypto market affecting participation in the African continent?

Like I beforehand talked about, the adoption fee is sort of excessive in Nigeria, and it’s the second largest market in Africa. Right now, regulatory efforts in the market have confirmed to not have an ideal impression on adoption/dealer actions. But we may see P2P buying and selling, for occasion, grow to be extremely popular in Nigeria as regulation banned industrial banks from dealing in transactions with crypto exchanges and associated accounts in early 2021.

The report mentions that Nigerians largely use crypto as a way of financial savings. How did the report come to this conclusion?

The report contains completely different research in areas. Data in international trade markets exhibits that Nigeria’s foreign money (Naira) efficiency just lately has skilled a gradual declination. I feel for most individuals in Nigeria, protecting cash in foreign exchange like the US greenback is a simpler manner of saving for future pursuits than that of saving in native foreign money. They may make use of various cryptocurrencies, the comparatively risky ones like BTC, ETH, and folks may also make investments in stablecoins, that are fairly steady and linked to USD.

The report mentions that whereas robust progress in crypto adoption is anticipated in Africa, derivatives buying and selling might lag given their restricted use in conventional markets. What should Africa do in order to spice up spinoff buying and selling participation?

Permit me to reiterate the want for mass schooling for mass adoption. People want schooling about monetary data and cryptocurrency investing. Then they might higher perceive the advantages and dangers of various spinoff buying and selling gives and discover the most fitted ones for themselves. These are efficient methods to spice up spinoff participation.

In Bitget, we launched an modern buying and selling product referred to as the ‘One-click copy Trade’. This is a pioneer use case in social buying and selling and has amassed over 55,000 skilled merchants, with roughly 1.1 million followers. This characteristic permits new gamers and veteran merchants to be taught from and observe completely different buying and selling methods and take part and earn their share from the crypto market in only one click on. This is a part of our mission of ‘Better Trading, Better Life’ for everybody. Both the merchants and copiers profit from the end result of their trades and presently we’re the world’s largest crypto copy buying and selling platform and certainly one of the 5 largest crypto derivatives trade platforms in response to Coingecko.

Interest nuggets from the Report

• According to the report, solely 0.3% of particular person wealth is invested in crypto. For comparability, over 25% is invested in equities. This signifies that there’s important headroom for progress.
• The report mentions that the crypto area remains to be at the starting of the adoption curve. When evaluating the adoption curve of net 3.0 vs the web in the Nineties, we will observe that crypto is ready to hit 1 billion customers by 2030 (if the present progress fee continues).
• Institutional adoption is rising (and quick). Hedge funds and VCs doubled their crypto publicity from $35b to $70b from This autumn 2020 to This autumn 2021. BCG said that they anticipate “allocations to proceed to rise,” with institutional funding, “selecting up momentum.”
• The report explains that growing international locations supply enormous scope for progress. They have greater crypto penetration than developed international locations, as crypto offers distinctive alternatives amongst much less mature monetary infrastructure. The report said that these markets may pave the manner for day-to-day web3 use circumstances.
• Both centralized and decentralized exchanges are set to expertise progress. The report explains that the future will include “co-existence” between each CEXs and DEXs. CEXs at present dominate the derivatives buying and selling sector, whereas DEXs will see “robust quantity progress in the spot phase.”

Related