Day by day, we are advancing into the future. The future that many has tried to predict with having flying cars, and what not. Many technological advancements and revolutionary movements have undoubtedly occurred over time as we keep advancing into the future.

Look around you, there is literally nothing that has not been directly or indirectly influenced virtually. Digital currencies are not left out of these revolutionary movements we experience in the virtual world every day.

What Are Cryptocurrencies?

Cryptocurrencies are digital currencies. They are mostly intangible and exist in the form of coins. They are also mostly created to be free from government manipulation or control, and are backed up by a security system known as cryptography.

As at now, there are over 2,000 cryptocurrencies in the world, many of which enjoy a level of popularity and demand among a dedicated community.

The list of these currencies would keep expanding so long as technology exists. Below, we would examine and give brief details about top 5 cryptocurrencies that are popular in Nigeria today.

Top Cryptocurrencies in Nigeria Today

• Bitcoin (BTC)

Bitcoin is often regarded as the original cryptocurrency being the first cryptocurrency to exist in its nature. It is also the largest cryptocurrency when you consider the market cap size - the number of Bitcoins in circulation multiplied by the current market price. The estimated market cap of Bitcoin is $494,539,331,679.

Nigeria became the second largest Bitcoin market on Paxful, the largest platform for Peer-to-Peer trade in Africa. Between January and September, Paxful reported a 137% increase in new registrations in Nigeria.

Interestingly, the #EndSARS protest fueled the use of Bitcoin transaction in the country as many people sought to use Bitcoin for donations as soon as the government restricted protesters from using their local accounts to make transfer. At the end of the day, Bitcoin accounted for about 40% of donations raised, clearing the narrative that it is a scam, used for illegal activities.

• Ethereum (ETH)

Ethereum is the next on our list. If you ask any Nigerian to mention at least three cryptocurrencies, Ethereum is more than likely to come second after they mention Bitcoin. Well, according to its market cap, Ethereum also comes in second largest after Bitcoin with a market cap estimation of $82,299,520,352.

Like the price of Bitcoin, the price of Ethereum has also tripled since January 2020, and many Nigerians can not help but feel like Ethereum might just be the next big thing. A lot of Nigerians, especially those who missed out on buying Bitcoin when the price was relatively low compared to now, would certainly not want to miss out on Ethereum’s upward trend. Just in case it booms like Bitcoin and they become millionaires tomorrow too.

They might just be right, seeing that Ethereum has more to offer than just being a payment cryptocurrency

• Tether (USDT)

Tether is a stable coin. Stable coins are cryptocurrencies that link their market value to another “stable” currency like fiat currencies (Naira or Dollars), or a known commodity like gold. The effect of this is to reduce the price volatility all cryptocurrencies are well known for.

Tether is categorically the most popular stable coin in the world today. It has a market cap of $21,092,144,459 USD with a circulating supply of circulating supply of 21,075,636,250 USDT coins. The stable coin shows enough promise because of its unique feature, and functionality of balancing stable currencies, with digital currencies. However, they lack some primary features akin to cryptocurrencies like decentralization.

Notwithstanding, this cryptocurrency is beginning to slowly and gradually secure a place in the Nigerian crypto market.

• Ripple (XRP)

Ripple is said to be a low-risk investment with potential reward. Besides being your typical digital currency (Ripple XRP), it also serves as an alternative payment platform that facilitates payments across international borders all over the world. How? By connecting banks all over the world, to one single platform — RippleNet.

Ripple is considered a good investment for investors who are looking to invest in the future of payment and transactions in the financial sector. With respect to its value as a cryptocurrency, crypto experts believe that Ripple XRP stands a solid chance to experience a prosperous 2021 ahead. 

• Litecoin (LTC)

Litecoin was an early bitcoin spinoff of alternative cryptocurrencies (altcoin), starting in October 2011. In technical details, Litecoin is nearly identical to Bitcoin. For example, like its counterpart, Litecoin also has a limited supply of 84 million, after which no more coins would come into the market.

The Litecoin is one altcoin (alternative cryptocurrency) that also seems to have great potential, and gain recognizable attention in the Nigerian crypto-market.

These are the top cryptocurrencies popularly traded in Nigeria today. The results of these article were derived from surveys carried out in different parts of Nigeria.