Social media influence on cryptocurrency adoption and volatility In Nigeria

Abstract

The digital financial tools are rapidly gaining traction in Nigeria amid economic instability and social media platforms have become key spaces for influencing cryptocurrency adoption and shaping investor sentiment. This study explores the dual role of social media both as facilitator of financial inclusion and source of behavioral volatility through an explanatory sequential mixed-methods design. Deriving from quantitative survey of 391 participants and 17 in-depth interviews, the research examined how exposure to crypto content, emotional drivers like fear of missing out (FOMO), and perceived trust in online influencers influence both adoption behaviors and perceived market instability. Regression analysis confirmed that social media exposure significantly predicts adoption patterns R2=0.614, p<0.001, while qualitative findings reveal how impulsive decision-making and digital peer influence exacerbate market fluctuations. These results show that cryptocurrency adoption in Nigeria is primarily shaped by digital peer dynamics and social influence rather than by rational evaluation alone. The study contributes by providing stakeholder-specific implications, practical adoption guidelines, and comparative analysis of Nigerian studies while also acknowledging methodological limitations.