Nigeria Has The Second Largest Market For Cryptocurrencies In Africa In 2022- Bitget Report.
A new cryptocurrency market report titled, “What Does the Future Hold for Crypto Exchanges,” has revealed that; in terms of the cryptocurrency market size in Africa, Nigeria has the second largest market, behind South Africa. The report mentions that South Africans primarily use crypto as an alternative investment, while Nigerians use it mainly for savings.
The report was by a cryptocurrency exchange, Bitget. According to the report, only 0.3% of individual wealth is in crypto. For comparison, over 25% are in equities. This indicates that there is significant headroom for growth.
The report mentions that the crypto space is still at the beginning of the adoption curve. When comparing the adoption curve of web 3.0 vs the internet in the 1990s, we can observe that crypto is set to hit 1 billion users by 2030 (if the current growth rate continues).
Institutional adoption is rising (and fast). Hedge funds and VCs doubled their crypto exposure from $35b to $70b from Q4 2020 to Q4 2021. BCG stated that they expect “allocations to continue to rise,” with institutional investment, “picking up momentum.”
The report explains that developing countries offer huge scope for growth. They have higher crypto penetration than developed countries, as crypto provides unique opportunities amongst less mature financial infrastructure. The report stated that these markets could pave the way for day-to-day web3 use cases.
Both centralized and decentralized exchanges are set to experience growth. The report explains that the future will consist of “co-existence” between both CEXs and DEXs. CEXs currently dominate the derivatives trading sector, whereas DEXs will see “strong volume growth in the spot segment.”