Analysts agree: crypto activity and usage in Sub-Saharan Africa is difficult to understand. The fact is that this region has its own specificities. According to a recent study, the volume of crypto transactions in sub-Saharan Africa is lower: 100.6 billion dollars between July 2021 and June 2022. It is nevertheless clear that there is a high rate of use and adoption of cryptography in this same region. Decryption…
Volume of transactions: sub-Saharan Africa lagging behind
A recent report from chain analysis shows that sub-Saharan Africa only accounts for 2% of global crypto transaction volume. Between July 2021 and June 2022, the transaction volume amounts to 100.6 billion dollars.
However, there is a significant increase of 16% compared to the previous year. A part which remains minimal if one refers to the other regions.
Crypto market in sub-Saharan Africa: figures that can be misleading
Further analysis and the African crypto reality demonstrates that these numbers can be misleading, without going so far as to say they are wrong. Because despite the fact that sub-Saharan Africa lags behind in terms of transaction volume, it contains some of the most developed cryptocurrency markets of all regions.
The Chainalysis report even confirms that in Sub-Saharan Africa, crypto is an integral part of users’ daily financial activities. Nigeria and Kenya stand out in particular, respectively winning the 11e square and the 19e place in the ranking Global Crypto Adoption Index.
Use and adoption of cryptocurrency in sub-Saharan Africa: what about the particularities?
The first peculiarity of the use of crypto in sub-Saharan Africa lies in the strong presence of retail transfers. Retail transfers under $10,000 actually account for 6.4% of transaction volumes, more than any other region surveyed. And if we take individual transfers apart, retail transfers represent 95% of all transfers.
The excessive use of peer-to-peer platforms also differentiates sub-Saharan Africa from other regions. The volume of transactions is indeed exploding on these crypto platforms which allow traders to trade directly with each other.
As in other regions, different reasons push young Africans to turn to cryptocurrency. In sub-Saharan Africa, the use of cryptographic tokens tends to become more democratic. Crypto does not only allow African users to feed their families. They also use it to meet their financial needs. For young graduates and the unemployed, crypto has even become a boon. All this to say that the use of crypto in sub-Saharan Africa will grow before long.
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