Chainalysis: Africa’s on-chain transaction volume up 13-fold over the year

From July 2020 through June 2021, the on-chain value transacted in Africa amounted to $105.6 billion — 1,200% higher than in the corresponding period of the previous year. The drivers were the popularity of P2P platforms and remittances, as well as the drive to safeguard savings from inflation.

Africa has the smallest crypto market of any region we study, but its total tx volume grew over 1200% over the previous year. The region shows high grassroots adoption with countries like Kenya and Nigeria ranking high on our Global Crypto Adoption Index. https://t.co/NAklBlNZc7

— Chainalysis (@chainalysis) September 14, 2021

Kenya, Nigeria, South Africa and Tanzania entered the top-20 of the Global Crypto Adoption Index.

In terms of total growth, the continent ranked third globally. In the share of transactions attributed to transfers by individuals, the region topped the list — almost 7% versus a global average of 5.5%.

On the popular P2P platforms Paxful and LocalBitcoins accounted for 1.2% of all crypto transactions in Africa. Their business benefits from restrictions imposed by authorities in many countries or a full ban on banks servicing local bitcoin exchanges.

Cryptocurrencies also help residents of the continent bypass capital controls, hedge savings against depreciation of national currencies, and save on cross-border transfers.

In August, the Central Bank of Nigeria unveiled a set of guiding principles for the planned national digital currency.

Earlier, the monetary regulator of Ghana announced that the CBDC was in an advanced stage of development.

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