New data published by Castle Island Ventures, supported by Visa, shows that crypto users in five developing countries—Nigeria, India, Indonesia, Turkey, and Brazil—are increasingly turning to stablecoins for both payment and savings purposes.
Key Findings of the Study
According to a survey of 2541 cryptocurrency users in these countries, crypto trading remains the most popular use case for stablecoins, applying to 50% of respondents. Saving money in dollars (47%) was the second most popular use case, and was the top use case in Nigeria. Others cited better currency conversion rates (43%), earning DeFi yield (44%), and converting local currency to dollars (43%) as reasons for using stablecoins. The stablecoin market is overwhelmingly comprised of USD-pegged crypto tokens, accounting for nearly 99% of the market by market cap. Leading the market is Tether (USDT), which alone accounts for 69% of the market.
Popularity of Stablecoins in Nigeria
Nigeria demonstrates the most active use of stablecoins among the surveyed countries. More than 77% of Nigerian respondents hold over 10% of their assets in stablecoins. They also reported the highest share of non-trading use cases and the highest self-reported knowledge of such tokens. Overall, 87% of those surveyed had a favorable opinion of stablecoins.
Conclusion of the Report
The study indicates that stablecoin usage continues to grow in all surveyed countries. A majority of respondents reported increasing their usage of stablecoins over the past year, and an even larger share indicated that they plan to further increase their usage in the coming year.
The report by Castle Island Ventures highlights the significant growth of stablecoin usage in developing countries. Particularly, Nigeria shows a strong trend toward increasing the share of stablecoins in users' portfolios.
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