The cryptocurrency market in Africa has been considered minuscule for years, until recently African countries are widely adopting cryptocurrency. As per a recently published report by Chainalysis, African countries are adopting and shifting to cryptocurrency resulting in rapid proliferation.
Africa Ranks in the Top in Adopting Cryptocurrency
In the period, from July 2020 to June 2021 – Africa’s cryptocurrency market grew by over 1200%, in one year. The monetary value of the cryptocurrency market also amounts to $105.6 billion.
As per reports by the Global Crypto Adoption Index Kenya, Nigeria, South Africa, and Tanzania all rank among the top 20 countries. Along with this, Africa as an accumulation of all its member states has ranked third in the world in rapidly adopting cryptocurrency.
The report also mentioned that the major crypto trading and investment aren’t driven by big institutional investments. Rather, it is the result of a huge number of small and medium-sized retail investors. Hence, Chainalysis reports mentioned that the peer to peer applications are extremely popular in Africa.
The report specified the region of Africa has “some of the highest grassroots adoptions in the world.”
“Cross-region transfers also make up a bigger share of Africa’s cryptocurrency market than any other region at 96 percent of all transaction volume, versus 78 percent for all regions combined,” the report said.
It also explained, how peer-to-peer (P2P) applications are most popular in Africa and the region consists of the highest number of users, compared to other nations.
“Some countries, such as Nigeria and Kenya, have made it difficult for customers to send money to cryptocurrency businesses from their bank accounts, either by passing laws or simply by advising banks not to allow these transfers. However, this isn’t an issue for P2P platforms, which are non-custodial and let customers trade cash for cryptocurrency amongst themselves,” Chainalysis explained.
Africa is now enlisted among other countries credited for adopting cryptocurrency rapidly [ [and responsibly]. Vietnam, Pakistan, and India are among the top countries in the ‘top 20’ list.