Africa amassed $105.6bn worth of cryptocurrencies in forecasts for the year ending June 2021, driven by peer-to-peer (P2P) transactions in key growth markets.
The African cryptocurrency market is continuing to grow at an unprecedented rate. Between July 2020 and June 2021, adoption grew by 1200%, making it the fastest adoption rate in the world.
However, in terms of overall values traded, the continent is still playing catch-up to other regions.
Despite this, Africa is home to some of the most innovative and forward-thinking markets in the world. Countries like Nigeria, Kenya, South Africa, and Tanzania have seen some of the highest grass-roots adoptions of cryptocurrency and rank highly on the Global Crypto Adoption Index.
Digital analytics firm Chainalysis’ latest figures show that transactions volume made up of retail-sized transfers in Africa was seven percent, against the global average of 5.5%.
This growth is only set to continue as more and more people on the continent discover the advantages of cryptocurrency.
What is driving this growth?
One of the main reasons for Africa’s high rate of cryptocurrency adoption is the continent’s large unbanked population. According to the World Bank, over 50% of the African population does not have access to traditional banking services.
This means that many people are forced to resort to using expensive and often unreliable methods of sending and receiving money. Cryptocurrency provides a much cheaper and more efficient alternative for these people.
Another factor driving cryptocurrency adoption in Africa is the continent’s high mobile penetration rate. According to The Economist, there are more mobile phones than people in Africa. This widespread access to technology is making it easier for people to use cryptocurrency.
What does the future hold for the African cryptocurrency market?
The future looks bright for cryptocurrency in Africa. With a large unbanked population and a high mobile penetration rate, the continent is ripe for further adoption. If current trends continue, we could see Africa become a major player in the global cryptocurrency market.
That’s why at Bull Network we are focused on marketing, devoted to helping crypto & blockchain projects drive growth through valuable and engaging customer engagement penetrating the African market with ease.