Chainalysis, a blockchain research firm, has reported significant growth in Nigeria’s crypto transaction volume, reaching $56.7 billion in the period from July 2022 to June 2023.
This marks a remarkable nine percent year-over-year increase, demonstrating the country’s resilience in the face of market turbulence within the crypto space.
Nigeria among nations with growing crypto transactions
According to Chainalysis, Nigeria stands out as one of only six countries among the top 50 globally, where crypto transaction volume experienced year-over-year growth during the studied period.
Nigeria’s growth rate of 9.0 percent places it third among these six nations.
The firm suggests that Nigerians are increasingly turning to cryptocurrencies as a means to safeguard the value of their savings against the backdrop of rising inflation and debt.
Nigeria has faced economic challenges, including two major recessions since 2016, driven by political instability, the COVID-19 pandemic, and falling oil prices.
These factors have led to high unemployment rates, with over 20 million people seeking employment in 2021, prompting many Nigerians to seek opportunities abroad.
As the value of the Naira has declined, interest in Bitcoin and stablecoins has surged, making Nigeria one of the world’s leading countries in terms of crypto adoption.
Despite being part of the relatively smaller cryptocurrency market in Sub-Saharan Africa, Nigeria ranks second globally for crypto adoption, with crypto playing an increasingly significant role in the daily lives of its residents.