Local Nigerians maintain interest in cryptocurrencies despite an ongoing crackdown on digital asset exchange platforms, with bitcoin and meme coins like DogeCoin dominating in various regions.
According to an analysis published by a local outlet, the primary motivation for cryptocurrency traders and owners in Nigeria is financial gain and hedging against the volatile situation in the country’s fragile foreign exchange (FX) market.
Moreover, the crypto industry has continued to facilitate millions of dollars worth of transactions despite obstacles like the recent clampdown on p2p trading on exchanges. The rigid foreign exchange policies and expensive transaction fees compared to other emerging markets are also making people use cryptos.
REGULATION | Crypto Exchanges to Stop StableCoin Sales in Nigeria Amid Apparent Crackdown
“There was a meeting of crypto founders on Tuesday [February 27 2024] morning, and a number of them agreed to suspend the trades on their platform,” a person at that meeting told a local… pic.twitter.com/iiYBuYrpOu
— BitKE (@BitcoinKE) February 29, 2024
Looking at the breakdown in terms of individual crypto popularity across the vast country, interest in DogeCoin is particularly strong in Nigeria’s conservative northern states of Katsina and Borno. Additionally, these states, along with Akwa Ibom, Jigawa, and Yobe, exhibit significant interest in Solana.
Bitcoin (BTC) is popular in Nigeria’s Delta State, with Anambra, Bayelsa, Edo, and Rivers states also showing significant interest. The analyst noted an apparent correlation concerning the strong Bitcoin preference in Delta State, which is the origin of some of Nigeria’s leading economic figures such as Dr. Ngozi Iweala, Jim Ovia, and Tony Elumelu.
- Nigerians in states with limited banking services tend to prefer the stablecoin, USDT, with the stablecoin said to be highly sought after in the states of Ebonyi, Anambra, Jigawa, Bauchi, and Enugu, the analyst said.
- Meanwhile, Ethereum is the most popular cryptocurrency in the southeast region.
- Lagos, Nigeria’s commercial capital does not feature in the top 10 of any of the cryptocurrency rankings, according to the analyst. This is despite being home to most of Nigeria’s crypto platforms, such as Quidax, and having a robust fintech presence.
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