In a significant development, Nigeria’s Central Bank has recently lifted its stringent restrictions on cryptocurrency transactions after nearly two years. Collaborating with local banks, the Central Bank is now working towards the creation of a stablecoin called cNGN, which will be backed by and pegged to the Nigerian naira. This move aims to support blockchain technology and offer financial alternatives in a country grappling with economic uncertainties. Ranked as one of the most crypto-friendly jurisdictions globally and holding the second position in global crypto adoption, Nigeria is poised to embrace the potential of digital currencies.
Digital-Asset Market Performance in 2023:
The year 2023 saw a remarkable performance in digital-asset markets, with the CoinDesk Market Index (CMI) gaining an impressive 125%. Bitcoin emerged as the outperformer in this period, while Ethereum fell short of expectations. Notably, the CoinDesk Computing Index (CPU) showcased the highest gains among sector indices. Tokens such as Injective Protocol’s INJ, RenderToken’s RNDR, and Solana’s SOL delivered significant returns. However, some tokens, including ApeCoin, Luna, DASH, BAL, OMG, and ZEC, experienced losses in the CMI. The dominance of Bitcoin remained prominent, and the article also touches upon the performance of other notable tokens like XRP and XLM. Additionally, the CoinDesk Smart Contract Platform Sector (SMT) saw positive developments with the growth of tokens such as Avalanche’s AVAX, Ethereum’s ETH, and the SKALE token.
Base Network’s Steady Growth:
One project that has caught attention is Base Network, backed by Coinbase, as it has displayed consistent growth in its total value locked (TVL), albeit at a slightly slower pace compared to its initial surge. Recent data indicates a 4% increase in TVL, reaching close to $735 million in the past week. Moreover, user engagement has been on the rise, with cumulative users surpassing 3 million by December 22. Daily active users have also shown significant growth, consistently surpassing 70,000 since November. The network has observed a surge in daily trading volume for Ethereum. Despite encountering certain obstacles, Base Network’s noteworthy expansion in users, transactions, and daily volume signifies a sustained interest and potential for growth.
The Future of Crypto Markets:
As we look ahead, it is crucial to acknowledge the unpredictable nature of crypto markets, making it difficult to predict future outcomes with certainty. However, Nigeria’s embrace of blockchain technology and the lifting of crypto restrictions exemplify the growing acceptance of digital currencies and their potential to shape the financial landscape. With continued advancements and innovations in the industry, the potential for blockchain and cryptocurrencies to provide viable alternatives in uncertain economic climates remains robust.
In conclusion, the lifting of cryptocurrency restrictions in Nigeria showcases the country’s commitment to supporting blockchain technology and providing financial opportunities amidst economic challenges. The performance of digital-asset markets in 2023, the growth of Base Network, and the exciting developments across various tokens and sectors highlight the increasing interest and potential within the crypto space. While the future of crypto markets remains uncertain, the transformative power of blockchain technology continues to push boundaries and offer exciting possibilities for a decentralized financial future.