Cryptocurrency

Africa Leads Bitcoin as Crypto Adoption Hits Highest

Africa Leads Bitcoin as Crypto Adoption Hits Highest

  • A report by analytics firm Chainalysis has revealed that Africa leads the rest of the world for Bitcoin adoption
  • Africa’s cryptocurrency adoption has grown by %1200 in the past year, with Nigeria leading the way
  • Between July 2020 and June 2021, $105.6 billion worth of cryptocurrency was received by African countries

Africa’s cryptocurrency market has grown 12 times in the last year, according to research by blockchain analytical firm Chainanalyis.

Bitcoin

The research firm estimated that $105.6 billion worth of cryptocurrency was received by counties in the continent between July 2020 and June 2021.

The continent’s adoption has been aided by growing crypto knowledge in regions like Kenya, Nigeria, South Africa and Tanzania.

The above countries were ranked in Chainanalysis’s top 20 of Global Crypto Adoption Index.

The report indicates that the trend can be attributed to the factors below:

Growth in grassroots adoption
Increasing popularity of peer-to-peer (P2P) Platforms
Crypto-based remittances
Crypto as a tool for wealth preservation

The report also shows that despite the growth, Africa was the smallest cryptocurrency economy among the continent’s reviewed.

The firm noted that the use of Peer-to-Peer platforms for Bitcoin transactions was more prominent in Africa as users rely on them for transactions.

The high use of p2p platforms will also likely have been aided by the suspension of crypto-related activities among institutions of Africa’s largest crypto economy, Nigeria.

Read also: MicroStrategy Acquires Additional $242 Million Worth of Bitcoin

In addition, Nigeria’s central bank has devalued the country’s official country Naira by 35% in the past 5 years.

This has led many to seek alternative methods to preserve the value of their wealth.

P2P exchange company Paxful confirmed this by disclosing that the exchange’s growth in Nigeria has skyrocketed in times of currency devaluation.

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