Nigeria is known to be one of the countries with the highest number of cryptocurrency enthusiasts. However, with the country’s strict regulation on digital assets, the future of cryptocurrency in Nigeria seems unpredictable. Fortunately, Crypto in Afrika is here to provide crypto market future predictions to help you know what awaits the cryptocurrency industry in Nigeria.
What happens in the crypto market?
The crypto market is a vital part of the cryptocurrency ecosystem since this is where investors/holders process crypto transactions such as buying, selling and trading.
The crypto markets are unique because they integrate blockchain technology to ensure safety, transparency and efficiency with their transactions. Blockchain is a decentralised public ledger that records all the necessary data after every transaction and makes it viewable to everyone on the network using the internet.
Additionally, this technology allows transactions within the network to be processed without authorising a central governing body. This allows for cheaper and faster transactions that won’t require personal details from the two parties involved in the trade.
How the crypto market works
As mentioned previously, crypto markets work with the use of blockchain. This makes each transaction in the exchange purely peer-to-peer (P2P), allowing buyers to directly purchase their desired amount of crypto assets from a seller without a middleman or a third party.
However, before any trading can be done, every crypto investor must create an account on the exchange and verify their identity. When done, they can start buying and selling assets with traders online.
Additionally, P2P trading allows traders more control over their orders since they can set their terms. For example, a user who wishes to trade through P2P transactions can choose who they want to transact with, the payment method that will be used, and more.
Nigeria crypto market size
On February 5, 2021, the Central Bank of Nigeria (CBN) authorised an order that all financial establishments within the country halt all facilitations regarding crypto transactions. Along with this order was the instruction to close all accounts transacting cryptocurrencies.
The CBN had good intentions with this decision, aiming to protect its citizens and economy from potential cyber-attacks that may come with crypto transactions. However, this order didn’t stop Nigerian crypto investors from showing interest in virtual currencies as their demand only grew.
Despite the restriction, cryptocurrencies continued to spread in Nigeria. According to a study conducted by CoinGecko in April 2022, Nigeria is the country with the most people that are curious about cryptocurrencies.
Nigeria has also proven that they’re not falling behind the ever-changing market trends of the digital age. In 2021, it ranked sixth in the Global Cryptocurrency Adoption Index.
Crypto market cap
The crypto market capitalisation, or the market cap, is the total value of all the tokens mined from the entire supply of a specific cryptocurrency. The market cap can be calculated by multiplying the current price of a single token by the total number of coins in circulation.
By determining the market cap, crypto investors can know how the token ranks in the crypto market. For instance, Bitcoin currently has a market cap of $390,993,655,188, making it the token with the largest market cap.
What does the future of cryptocurrency look like
With Nigeria taking up a huge chunk of the total users of cryptocurrencies, predictions are being made on the future of cryptocurrency for the country. For starters, well-known crypto expert David Osage stated that adopting cryptocurrencies in Nigeria could positively affect the economy if done right.
Osage expounded on this thought by stating that the adoption of cryptocurrencies as legal tender will help the citizens of the country escape from the current inflation it’s experiencing, especially with their soaring food prices.
Additionally, he stated that these virtual currencies could also help various businesses in Nigeria.
Future of crypto
Since the price of these virtual assets is volatile, it’s difficult to say for sure what to expect from the crypto market for the future. Their value could rise to all-time highs today and fall to all-time lows in a few months.
However, some experts suggest that cryptocurrencies will be adopted as legal tender in the future. This has been the case for several businesses around the world. In September 2021, El Salvador made history by becoming the first to accept Bitcoin as a legal tender.
Additionally, the global cryptocurrency market future is still growing; by 2027, experts predict it will surpass $1.4 billion.
Future of crypto market
It’s no secret that Nigeria is at the top of the list regarding the popularity of crypto, but is the crypto market the future for this country? Several answers point out that it will be used nationwide years from now.
For starters, the benefits of these virtual currencies were seen as opportunities by its citizens since they offer better remittances, online payments and trading thanks to blockchain technology.
These are also the same reasons why experts predict that cryptocurrencies will help ease the process of business in Nigeria once it’s been adopted properly since the SEC and the Central Bank of Nigeria (CBN) have restricted any transactions of financial institutions concerning cryptocurrency.
Fortunately, in May 2022, token issuance platforms and exchanges will be given a chance to be adopted in the country under a new regulation made by the SEC and the CBN. This regulation states that these crypto platforms and virtual assets service providers (VASPs) should create and establish trust accounts with receiving institutions.
Additionally, with the Securities and Exchange Commission’s recent issuance of licenses for these virtual assets service providers, the future of crypto in Nigeria looks promising.
Cryptocurrency future market cap
In 2020, the value of the global cryptocurrency market size was $1.49 billion, and it’s evident that these virtual assets are experiencing a rising tide. This is why expert analysts predict that the crypto future market cap will grow to almost $5 billion in 2030.
This statistic should be taken with a grain of salt since the value of these virtual assets can go down in a snap. Just like any investment, crypto traders and holders should expect that they could lose what they invested at any time.
Which cryptocurrency has a future?
At the time of writing, the most traded pair in the Nigeria crypto market is Bitcoin/Naira. Bitcoin is the largest cryptocurrency in the world by market cap, while Naira is the Nigerian basic monetary value.
So, is cryptocurrency the future? Many are considered the best cryptocurrency for future investments. You have to find the one that shows great potential in its market performance, including the price and market cap.
What is the future of cryptocurrency in Nigeria?
The benefits that crypto holders and investors have are some of the reasons why crypto is the future. Despite the Central Bank of Nigeria restricting crypto transactions, this didn’t stop the growth of interest its citizens have towards these digital assets.
With the recent regulation of the SEC that seeks to loosen up the rules regarding these coins, it’s safe to say that the future of cryptocurrency in Nigeria is bright.
FAQs
What is the market cap in crypto?
Market capitalisation in cryptocurrencies pertains to the total value of all the mined coins of a specific crypto. It’s used to indicate how dominant a coin is in the market.
The cryptocurrency futures market is computed by multiplying the total number of its current circulation coins by the price of a single coin.
How does market cap increase crypto?
The market cap can increase the cryptocurrency’s ranking in the market. In a nutshell, the larger the market cap is, the more dominant it is compared to other tokens.
What will be the market value of crypto in future?
Since the price of crypto is extremely volatile, there’s no definite way to predict the future market cap of cryptocurrency. Let’s take the crypto market future of Bitcoin, for example.
In April of 2021, the value of Bitcoin reached an all-time high, sitting at $60,000. Then, three months later, the coin reached an all-time low of $29,000.
With this kind of volatility, it makes it hard to have an exact prediction of what a token’s market cap will be years from now or the future of the cryptocurrency market as a whole. Additionally, knowing the price of a single cryptocurrency token is vital since it’s part of how the market cap is calculated.
What is the best cryptocurrency marketplace in Nigeria?
There is no one true answer to this question, as it’s purely based on the user’s preference. However, what we recommend the most for users in Africa include the following:
- Coinbase
- OKX
- Binance
- Crypto.com
- Kraken.
