Crypto growth fueled by emerging markets

The second annual Global Survey on Crypto and Web3 by Consensys reveals that emerging markets are significantly influencing global cryptocurrency adoption, particularly in Nigeria, South Africa, and the Philippines.

The report indicates that 93% of people worldwide are aware of cryptocurrencies, with 51% claiming to understand them. 

Ownership levels stand at 42%, with Nigeria leading at 73%, followed by South Africa at 68%, and the Philippines at 54%.

These countries have also seen notable increases in Web3 activities, such as engaging with non-fungible tokens (NFTs), decentralised finance (DeFi), and staking.

In Nigeria, 77% of respondents accurately defined blockchain technology, while 80% were familiar with the concept of decentralisation. 

South Africa reported a familiarity rate of 74%, and 61% of participants in the Philippines shared this understanding.

The report attributes the rise in crypto adoption in these regions to various factors, with many individuals viewing digital assets as solutions to local economic challenges. 

For example, 65% of Nigerians consider cryptocurrencies a means to store value amid currency instability, while 58% see them as the “future of money.” 

Moreover, individuals in these countries are more likely to invest in cryptocurrencies over the next year. 

In the Philippines, ownership has increased by 7% over the past year, reflecting growing interest in digital assets.

Despite this enthusiasm, the survey highlights ongoing barriers to entry. 

Concerns regarding market volatility, scams, and a lack of understanding about cryptocurrencies persist globally. 

However, these issues appear less pronounced in emerging markets, where respondents show a greater willingness to adopt virtual currencies.

The report also suggests that blockchain technology could help address concerns related to artificial intelligence (AI). 

Seventy-five percent of interviewees expressed worries about AI's potential for generating misinformation. 

Joseph Lubin, CEO of Consensys and co-founder of Ethereum (CRYPTO:ETH), emphasised the importance of blockchain in enhancing data privacy and transparency. 

He noted that recent developments indicate growing momentum for crypto and blockchain adoption, with 2024 expected to be a pivotal year for the industry.