Do you assume stablecoins are only a device for nameless cryptocurrency transactions? A brand new survey from Citadel Island Ventures suggests in any other case.
In a report sponsored by Visa, the corporate revealed that cryptocurrency customers in 5 growing international locations – Nigeria, India, Indonesia, Turkey and Brazil – are turning to stablecoins, primarily as a way of cost and financial savings expertise.
Stablecoins: Cryptocurrency’s Killer Use Case
in a poll Among the many 2,541 crypto customers in these international locations, crypto buying and selling was discovered to be the preferred use case for stablecoins, relevant to 50% of respondents.
Nevertheless, a number of different use circumstances have been additionally cited. Saving cash in US {dollars} (47%) is the second hottest, particularly in Nigeria the place it’s the primary use case. Others search higher foreign money change charges (43%) to Earn DeFi income (44%) and convert native foreign money to US {dollars} (43%).
The stablecoin market is overwhelmingly made up of crypto tokens pegged to the U.S. greenback, accounting for almost 99% of the sector by market capitalization. The chief is Tether (USDT) with solely 69% of the market. Customers who help Tether say they like its community results, consumer belief, liquidity and its monitor report.
Whereas Tether is the preferred stablecoin in these areas, Ethereum is the preferred blockchain amongst stablecoin customers — regardless of being the most costly chain behind rivals like Solana and Tron. The preferred non-custodial wallets are Belief Pockets, MetaMask, and Coinbase Pockets, though half of respondents stated they use Binance’s centralized change as an efficient pockets.
Stablecoins are additionally making headway as an essential a part of their holders’ portfolios. 55% of respondents stated such tokens accounted for greater than 10% of their belongings, and eight% stated such tokens accounted for 50% of their belongings.
“Stablecoin utilization is rising over time in all international locations surveyed,” the report states. “The vast majority of respondents stated their utilization has elevated over the previous 12 months, with extra A big proportion stated they’d enhance utilization additional within the coming 12 months.”
Nigeria’s love for cryptocurrencies
Whereas all international locations surveyed are in Chainaanalysis’s prime 15 for cryptocurrency adoption, stablecoin adoption is most pronounced in Nigeria by all metrics.
As an funding portfolio merchandise, over 77% of Nigerians hold greater than 10% of their belongings in stables. Additionally they have the very best proportion of non-crypto buying and selling use circumstances for stablecoins and the very best self-reported data of such tokens.
Total, 87% of respondents stated they’ve a good opinion of stablecoins.
“Crypto dollarization occasions are more likely to happen. We imagine that such occasions are at present actively occurring in Nigeria regardless of authorities hostility. explain Citadel Island Ventures normal accomplice Nic Carter spoke on Twitter.
Finish customers need digital greenback devices and foreign money substitution goes to occur it doesn’t matter what,” he added.
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