Cryptocurrency

Cryptocurrency Market in Africa grew by over 1,000% per year

Business Crypto Finance Technology

According to new research from bitcoin analysis firm Chainalysis, cryptocurrency adoption in Africa is exploding. A recent analysis by Chainalysis says that Africa’s cryptocurrency industry rose by 1,200 percent between July 2020 and June 2021, totaling $105.6 billion (approximately Rs. 775 crores). Kenya, Nigeria, South Africa, and Tanzania are among the top 20 countries on the Global Crypto Adoption Index. The African nations collectively represent the world’s third-fastest-growing cryptocurrency sector. The majority of these crypto transactions, according to the research, are driven by small and medium-sized retail purchasers and businesses rather than substantial institutional investors.

According to a survey by industry research firm Chainalysis, Africa has lower transfer amounts. It indicates that cryptocurrency trading is more widely used at the grassroots level.

“Cross-region transfers also account for a larger share of Africa’s cryptocurrency market than any other region, accounting for 96 percent of total transaction volume, compared to 78 percent for all regions combined,” according to the research.

The survey also found that using peer-to-peer (P2P) systems to facilitate crypto payments is more prevalent in Africa than in other nations. P2P platforms are online investment gateways that allow borrowers to find and purchase loans that meet their investment criteria by attracting lenders. Africa-based crypto buyers and investors can use these platforms to participate in digital currency trading.

“Some countries, such as Nigeria and Kenya, have made it impossible for users to transmit money to cryptocurrency businesses from their bank accounts, either through legislation or by instructing banks not to make such transactions. P2P systems, on the other hand, are non-custodial and allow clients to trade cash for cryptocurrencies amongst themselves,” according to Chainalysis.

For the time being, Vietnam, India, Pakistan, and Ukraine are the top four countries in terms of rapid crypto adoption. According to a survey released earlier this month, bitcoin adoption in these regions increased by 880 percent in 2020.