According to a report by Chainalysis, a blockchain data and analysis provider, Africa’s crypto market is one of the fastest-growing in the global crypto space with over 1,200% growth rate between June 2020 and June 2021.
This is exciting news considering that Africa is one of the most exciting, dynamic and fastest-growing crypto markets with some of the highest grassroots crypto adoption in the world, despite having the smallest crypto economy of any region globally.
The ranking saw South Africa, Nigeria, Tanzania and Kenya making it to the top 20 of the Chainalysis Global Crypto Adoption Index, thereby making Africa the third fastest-growing crypto economy with most of its transaction volumes coming from retail-sized transfers (the largest of any region at 7% above the 5.5% global average for retail transfers).
What makes this report interesting, especially with Nigeria and Kenya making the list as leading African countries in terms of crypto adoption, is the fact that the Nigerian and Kenyan governments were against crypto transactions in their respective countries.
Chainalysis pointed out that the cross-region value that Africa received between July 2019 and June 2020 was the highest of all regions which suggest that more Africans are receiving remittances via crypto.
It also highlighted the monthly crypto payment growth (both transaction and volume count) below $1,000 as a possible sign of an increase in crypto-based remittances to Africa.
A breakdown of the Chainalysis report:
- Globally, Africa has the smallest crypto economy
- Currency devaluation and inflation is making many
- Africans save in crypto
- Among the regions, Africa is the third-fastest growing crypto market
- More grassroots adoption owing to a smaller retail transfer size
- A 96% of all transaction volumes, indicating the biggest share in cross-region transfer
- International commercial transactions are being carried out with crypto by many African users due to capital controls
- Since most informal trading occurs on WhatsApp and Telegram, the rate of P2P activities in Africa is larger
- Africa makes up the largest retail-sized crypto transfers at over 7% – Global average is 5.5%
- 12% of all African transaction volumes are from P2P platforms
- Paxful has grown above 300% in Kenya and above 57% in Niger during this period
- In Africa, 2.6% of all volume for bitcoin are from P2P platforms
- Africa receives about half of all remittances that go to Sub-Saharan Africa which justifies the high crypto remittance volumes
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