According to a new report from Chainalysis, the crypto adoption rate in Africa rose 1200% this year as it seems that the love for crypto is growing every day across the continent. So read more on our latest crypto news today.
Africa is the undisputed world champion of crypto adoption with a growth of 1200% last year, which is considered sufficient for countries to usurp part of the top 10 most crypto-friendly countries. According to a review by Chainalysis, the 1200% increase in crypto volume last year is almost 50% higher than global average growth, and the rest of the United World saw a staggering 800% increase over the same period.
Not only will Africa’s crypto market grow 1200% in 2021, but the region also has some of the highest base adoption rates in the world, with Nigeria, Kenya, Tanzania and South Africa all ranking in the top 20 on the Global Cryptocurrency Acceptance Index. As Chanalysis reported, the growth rate of cryptocurrency adoption in Africa is among the largest number of retailers and non-organizational traders, which is in contrast to the context in developed countries, where institutional investment is key to the ecosystem.
Another graph shows that peer-to-peer trading is quite common in Africa compared to the rest of the world. Chainalysis counts P2P transactions as the main driver behind the adoption of cryptocurrencies along with purchases, transfers, and other financial interactions that use crypto as a medium of exchange P2P transactions have been fairly public, Chainalysis, for example, has skyrocketed transaction growth in local bitcoins since 2020. Outside of Exchanges However, more informal and private mechanisms like Telegram groups are preferred in traditional translations, so the actual volume is much higher.
Chainalysis explains that P2P platforms are starting to steal market share from exchanges like Binance, and according to the CEO of Nigerian blockchain company Convexity, centralized exchanges like Binance are becoming less popular because of the people. Africa chooses Paxful and other P2P sites. Given that the continent is dominated by a population without a bank account, using P2P platforms is seen as an easy way to move money internally. Around 96% of crypto remittances in Africa are remittance market-related, and Chainalysis argues that using BTC and other cryptocurrencies offsets the high costs associated with international remittances. Paxful COO Artur Schaback explains:
“When the government severely restricts the amount of money people can send abroad, they get creative and switch to cryptocurrencies. In many of these frontier markets, people cannot send money from their bank accounts to a central exchange, so they rely on P2P. “
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