Nigeria has established itself as a global leader in cryptocurrency adoption, trading approximately $59 billion as it rank second overall in the Chainalysis Global Adoption Index.
Between July 2023 and June 2024, the country traded about $59 billion in cryptocurrency.
Notably, about 85% of transfers received in Nigeria are for amounts less than $1 million, indicating that smaller retail and professional transactions are the primary drivers of the country’s vibrant cryptocurrency market.
This robust activity highlights the growing acceptance and utilization of digital currencies within Nigeria’s economy.
Stablecoins have become an essential part of Sub-Saharan Africa’s crypto economy, making up about 43% of the region’s overall transaction volume, according to Chainalysis research.
High inflation readings and the naira’s decline—which caused it to hit a record low in February 2024—are key factors driving the adoption of stablecoins in Nigeria.
the Head of Digital Assets at ABSA Bank CIB, Rob Downes revealed that the widespread foreign exchange crisis in Africa has significantly boosted stablecoin adoption.
The CEO and Co-Founder of Yellow Card, Chris Maurice noted that businesses in approximately 70% of African nations struggle to access the foreign
stablecoins present a viable alternative for businesses navigating these economic challenges.
Maurice further stated, “The government and the banks don’t have money, and even if they did, they wouldn’t give it to you.”
“People are starting to see the real-world utility of cryptocurrency, especially in day-to-day transactions, which is a shift from the earlier view of crypto as just a get-rich-quick scheme,” said Moyo Sodipo, COO and Co-Founder of Busha, a cryptocurrency exchange with a presence in Nigeria.
Stablecoins are increasingly becoming the preferred choice for small to medium-sized transactions, reflecting a trend of widespread adoption across the market.
While cryptocurrencies like Bitcoin and various altcoins continue to hold value and attract billions in investments, stablecoins are carving out a significant niche.
Additionally, the decentralized finance (DeFi) sector is experiencing notable growth in Nigeria, further underscoring the shift toward stablecoins as a practical solution in the evolving financial landscape.
Many Nigerians send money overseas using stablecoins because traditional remittance channels are expensive and inefficient. According to Sodipo, “Cross-border remittances are a major use case for stablecoins in Nigeria. It’s significantly quicker and less expensive.”
This trend aligns with a broader pattern in which Sub-Saharan Africa is emerging as a leader in decentralized finance (DeFi) adoption.
Nigeria is at the forefront of this movement, having received over $30 billion in value from DeFi services in the past year.
