In recent years, Nigeria has emerged as a global leader in crypto adoption, driven by innovative use cases to combat economic challenges. According to the 2024 Geography of Cryptocurrency Report by Chainalysis, the country received approximately $59 billion in cryptocurrency value between July 2023 and June 2024.
Nigeria has maintained its position as a top global player, ranking second worldwide, while Ethiopia (26), Kenya (28), and South Africa (30) also made the top 30.
The report notes that Nigeria’s crypto activity is largely driven by smaller denomination retail and professional sized transactions, with around 85% of the value of transfers received under $1 million.
Globally, however, Sub-Saharan Africa accounts for the global cryptocurrency economy’s smallest share, representing 2.7% of transaction volume worldwide between July 2023 and June 2024 — a reflection of the region’s smaller aggregate gross domestic product relative to other regions.
A combination of economic instability high inflation rates, and the desire for financial inclusion continue to drive the steady adoption.
Nonetheless, Sub-Saharan Africa saw modest growth, receiving an estimated $125 billion in on-chain value during this period, a $7.5 billion increase compared to last year.
Notably, the region leads the world in DeFi adoption, likely driven in part by a growing need for accessible financial services in a region where only 49% of adults had a bank account as of 2021, according to the World Bank.
The African cryptocurrency ecosystem however faces several challenges despite increased adoption. One of the major impediments is the continued regulatory uncertainty in the area. Some efforts are made by several governments to develop frameworks for digital currency regulation, among them being Nigeria and South Africa.
According to analysts, the surging price of Bitcoin remains the greatest source of interest in such vices due to the increasing value of Bitcoin compared to its mainly up to $10000 at the start of the year.
Yet the opportunities are vast. This is because cryptocurrencies are now being looked at as a vehicle for economic empowerment, which can enable African individuals and businesses to take part in the global economy without the shackles of traditional banking systems. In the wake of better regulatory clarity and improved financial literacy around cryptos, their adoption is likely to speed up across the continent.
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