The crypto adoption rates surge 1200% in Africa this year according to a new report by Chainalysis as it seems that the love for crypto is growing in the continent every day so let’s read more in our latest cryptocurrency news today.
Africa is an undisputed global champion in crypto adoption rates with its growth surging 1200% in the past year which was considered enough for countries to dethrone part of the top 10 of the most crypto-friendly nations. As per a review by chainalysis, the 1200% increase in crypto volume in the past year is almost 50% higher than the global growth average and the rest of the world united registered a mind-blowing increase of 800% increase in the same period.
It was not only Africa’s crypto market that grew by 1200% in 2021 but the region also had some of the highest grassroots adoptions in the world with Nigeria, Kenya, Tanzania, and South Africa all ranking the top 20 of the global Crypto Adoption Index. As Chanalysis reported, the crypto adoption growth in Africa was the most substantial amount retailers and non-institutional traders which was a contrast to the landscape in the developed countries where institutional investments are key to the ecosystem.
Another chart shows that the peer to peer trading is quite popular in Africa than in the rest of the world. Chainalysis counts P2P trades as a major factor for the crypto adoption along with purchases, remittances, and other financial interactions which use crypto as a means of exchange P2P trading was been quite instrumental in the explosion of crypto adoption in the country and as per the data shared by Chainalysis, the growth of trading on Local Bitcoins, for example, surged from 2020. However, outside of teh traditional exchanges, there was a preference for more private and informal mechanisms like Telegram groups so the volume is much higher in reality.
Chainalysis explained that the P2P platform started to steal the market share from exchanges like Binance and according to the CEO of Nigerian blockchain company Convexity, centralized exchanges like Binance are becoming less popular as Africans are choosing Paxful and other P2P sites. Considering that the continent is dominated by the unbanked population, the usage of P2P platforms established itself as an easy way to move the funds internally. About 96% of the crypto transfers in Africa are related to the remittance market and Chainalysis argued that the use of BTC and other cryptos has offset the high costs that were associated with the international transfers. The Paxful COO Artur Schaback explained:
“If the government is strictly limiting the amount of money people can send abroad, they’ll get creative and turn to cryptocurrency. In many of these frontier markets, people can’t send money from their bank accounts to a centralized exchange, so they rely on P2P.”
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