6 days ago
25
- A recently published report on global cryptocurrency adoption has shown a growing trend in Africa
- The latest ranking by Chainalysis shows that Nigeria ranked second globally and is the only African country in the top 20 position
- Nigeria reportedly received about $59 billion in cryptocurrency value between July 2023 and June 2024
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Amid high inflation and a crackdown by African governments on cryptocurrency platforms, the continent's crypto adoption has experienced massive growth since 2023.
The growth is driven by substantial investments and increased individual interests, facilitating trading across Africa.
Source: Getty Images
Africa sees massive crypto adoption
A recent report by Chainalysis says Sub-Saharan Africa contributed about 2.7% to the global crypto economy’s transaction volume this year.
However, the region has experienced significant growth in crypto transactions, with an estimated value of $125 billion during the review period, representing a $7.5 billion spike in 2023.
Africa’s massive crypto adoption is due to increased usage among Africans who leverage digital currencies for various reasons, such as business payments, inflation hedging, and smaller, more frequent transactions.
Nigeria process a $59 billion crypto transaction
In Nigeria, about 33% of the population invest in cryptocurrency. However, government crackdowns on crypto platforms have stifled adoption.
The government's restrictions include instructing telecommunication companies to restrict access to crypto platforms and directing operators to discontinue naira transactions.
The development followed a global concern about crypto use, as many governments had taken strong stances against cryptocurrencies and imposed strict regulations.
Despite Challenges, Nigeria reportedly received about $59 billion in cryptocurrency value between July 2023 and June 2024, making it the only African country in the top 20 ranking in 2024.
Top 10 African countries
The Chainalysis report shows the top African countries with the highest adoption rate in 2024.
Nigeria
In the report, Nigeria maintained its lead with the highest adoption rate in Africa and second globally.
Ethiopia
Ethiopia came second and was also crowned the fastest-growing cryptocurrency market on the continent for retail-size stable coin transfers, with 180% growth per year.
Morocco
Morocco's crypto adoption index is 20th globally, according to a 2023 report from blockchain analytics firm Chainalysis. After Ethiopia, Morocco is Africa's third country with the highest crypto adoption rate.
Kenya
According to the Chainalysis 2024 Global Crypto Adoption Index, Kenya ranks 28 globally regarding cryptocurrency adoption. In 2020, Kenya had the most significant volume in Africa, coming second only to Nigeria, with Bitcoin trades totalling approximately 6.48 billion Kenya shillings.
South Africa
Cryptocurrency is undeniably transforming the financial landscape of the region, home to several high-ranking nations on our Global Adoption Index.
Uganda
Uganda ranked sixth on the continent and 34th globally. In the past year, it has witnessed immense growth in crypto adoption.
Algeria
Algeria has seen a growing interest in Bitcoin and other altcoins. Algerian traders should consider the platform's security, affordability, and features when choosing a cryptocurrency exchange. The country is ranked seventh in Africa and 43rd globally.
Egypt
According to recent data, Egypt's cryptocurrency adoption rate is relatively high within the MENA region. Estimates suggest a user access rate of around 9.82% in 2024, with projections for further growth to reach 11.3 million users by 2025; this places Egypt among the top crypto-adopting countries in the region, even though the Central Bank of Egypt has issued warnings against using digital currencies.
Ghana
Ghana is experiencing a growing interest in cryptocurrency, with several factors contributing to the increase. The West African country is ranked ninth on the continent and 46 globally
Democratic Republic of Congo
The country has seen a surge in crypto adoption, earning it the 10th spot in Africa and 48 globally.
The top 20 positions in the global 2024 index were dominated by Central and Southern Asian countries and Oceania. India led Asia, which took seven out of the 20 spots.
Bitcoin Trades above $80,000
Legit.ng earlier reported that Bitcoin, the most expensive cryptocurrency in the world, rose to above $80,000 on Sunday for the first time.
The price of Bitcoin recently surpassed $75,000 on Wednesday, the same day that Republican Party candidate Donald Trump won the US presidential election.
CoinMarketCap, a website that tracks the price of cryptocurrency assets, showed that the top cryptocurrency has increased by more than 5.24 per cent, trading at $80,945.35 at 7:31 p.m. (GMT+1) on Sunday, November 10.
PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!
Source: Legit.ng
English (US) ·