Despite the market’s downward trend this year, the number of Nigerians with cryptocurrency stored in their digital wallets has increased vastly.
According to the latest report by Finder, Nigeria has the second-highest number of Bitcoin owners among cryptocurrency holders as of October at 48 per cent, representing a significant increase of over 16.1% recorded in October 2021.
In the chart of countries with the highest crypto holders, Australia ranks first, with 61% of crypto owners holding Bitcoin, the first and most popular cryptocurrency. This result hails from a thorough and careful survey of internet users in 26 countries by Finder’s Cryptocurrency Adoption Index.
Coingecko also released a report that revealed that Nigeria, against other technologically advanced countries, emerged as the country with the highest search ranking in crypto since the market’s bearish pull in April, with over 371 key search phrases.
Since the post-Covid-19 bloom of the cryptocurrency market, Nigerians have shown an intense devotion towards tokenonomics and the happenings around the cryptocurrency ecosystem. The real surprise is the continued rise of crypto holders in the face of a collapsing market. Thus, the question is: what has been the fuel behind this increased number of crypto holders in Nigeria?
Orientation of the Cryptocurrency Market
Looking back at the profits the cryptocurrency market enjoyed in 2021, the current state of the market further reinforces the preponderant emphasis laid on its volatility. Bitcoin nosedived from a high of $69,000 per coin last year to below $20,000 in May 2022.
The market released a new value yesterday as the two major coins, Bitcoin and Ethereum, suffered crashes. Bitcoin currently stands below $18,000, while Ethereum is valued below $2,000 per coin.
The news about Nigerians’ increased holdings of cryptocurrencies is a linear curve drafted from the market’s orientation. As an investor, the first thing you learn about the market is its volatility. The market is open to diverse movements. It could be upward; it could be downward. Interestingly, it is almost impossible to predict when there could be a turnaround in market momentum precisely.
Nigerians are aware of this, especially after witnessing the surge that shook the market in 2021. As much as the current market meltdown seems bad, a surge similar to 2021 will ensure investors forget all they had to endure when the market was down and bearish.
Normally, investors are advised to “buy the dip” when the market is down. The idea is for enthusiasts to buy an asset that’s falling in price. However, adequate knowledge should be acquired through thorough research to ensure the asset would become bullish in the future.
A host of diverse cryptocurrency conferences held in Nigeria this year emphasises the result of the Finders’ survey.