The continent of Africa may have the smallest cryptocurrency market share globally, but it has seen some of the highest growth in adoption in the past year. According to a report by Chainalysis, Africa had recorded 1,200% growth since June last year, with the need for cheaper remittances, the rise of peer-to-peer trading, and savings needs leading the revolution.
Africa received $105.6 billion worth of crypto in one year.
Africa received $105.6 billion worth of digital currencies. But it goes beyond the volume, Chainalysis reports. Africa also has the most dynamic market, with five countries from the region ranking in the top 20 of the Global Crypto Adoption Index. One of the aspects of the African cryptocurrency market that set it apart is the prevalence of retail crypto holders and traders. Chainalysis reports that the region has a 7% share of the market being retail and small-sized payments, higher than the global average at 5.5%.
Peer-to-peer platforms are a lifeline for the Bitcoin market in Africa.
For Africa, peer-to-peer platforms are a lifeline for the Bitcoin market. The New York-based blockchain analytics company revealed that no other region uses P2P platforms more. Kenya has ranked for the past two years as the world leader in P2P volume. This growth has been spurred by several factors, including an aversion by financial institutions in countries like Kenya and Nigeria against digital currency platforms. “In many of these frontier markets, people can’t send money from their bank accounts to a centralized exchange, so they rely on P2P,” Artur Schaback, the COO and co-founder of the popular Paxful P2P platform, told Chainalysis.