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Nigeria Leads African Cryptocurrency Adoption South Africa Trails

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10 months ago

July 10, 2023

The enthusiasm for cryptocurrency has taken hold worldwide, including in various regions of Africa. Over the years, the continent has consistently shown a strong bullish attitude towards the industry, but one country stands out as the epicentre of major interest. A recent report reveals that Nigeria has emerged as the African country with the highest level of cryptocurrency interest in 2023, with South Africa following behind, albeit at a significant distance as reported by Watcher.Guru.

According to the latest report from CoinGecko, Nigeria accounts for a staggering 66.8% of the cryptocurrency industry in Africa. In comparison, South Africa secures the second position with an 8.36% share. This indicates Nigeria’s cryptocurrency interest is nearly eight times higher than South Africa’s.

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Interestingly, the most popular cryptocurrencies in the Nigerian market may not be the most well-known globally. Peepo [PEEPO], Liquity [LQTY], and Conflux [CFX] have emerged as the top three favoured assets in Nigeria. Liquidity and Conflux have gained prominence as notable borrowing protocols. In South Africa, however, Truebit Protocol [TRU] and Dodo [DODO], the native token of a decentralised exchange, are popular due to their computational technology. It is worth noting that Shiba Inu claims the second spot as the most popular cryptocurrency asset in the country.

Supplied by Coin Gecko

African countries have also shown a notable affinity for meme coins. Shiba Inu, in addition to gaining popularity in South Africa, has become one of the preferred crypto assets in the Ivory Coast. Other meme coins, such as Dogecoin [DOGE], Baby DogeCoin [BABYDOGE], and Pepe Coin [PEPE], have garnered substantial interest among crypto enthusiasts across Africa.

But why does Nigeria dominate while other African countries lag behind? As mentioned earlier, Nigeria has consistently topped the charts. Previously, Nigeria and Kenya were recognised as the most crypto-curious countries globally. However, Kenya has now dropped to the 11th position, with a modest interest of 0.59% originating from the region.

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As observed, the remaining 48 African countries demonstrate relatively low levels of cryptocurrency interest compared to other regions on the continent, each accounting for less than a 2.0% share year-to-date [YTD].

The disparity in cryptocurrency interest across Africa can be attributed to pressing issues, particularly in Nigeria. The country has faced significant challenges, including cash shortages, disruptions in traditional financial systems, and violent protests. Amidst this turmoil, the Nigerian government promoted the use of the e-naira digital currency to its citizens. However, instead of embracing the government-backed currency, the people of Nigeria have preferred exploring cryptocurrencies.

It is important to note that despite Nigeria’s leading position, only around 5.75% of the country’s overall population possesses cryptocurrency. In contrast, South Africa, the second-ranked country, sees approximately 10% of its population engaged in crypto ownership.

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