Chainalysis recently released a report that shows significant growth in the African crypto market since last year. Much of this growth is due to the increasing number of peer-to-peer platforms and the necessity to secure investment value using crypto. The report also revealed a crypto market increase of over 1200% between July 2020 and June 2021.
Countries experiencing the highest levels of adoption include Nigeria, Kenya, South Africa, and Tanzania. In addition, Africa boasted the largest share in retail transaction volumes compared to the rest of the world. The overall transaction volume in Africa was 7%, compared to the global average of 5.5%.
The rising number of P2P platforms on the African continent facilitates crypto trading for users in crypto-banned countries. A reported $105.6 billion worth of crypto traveled between the local banks and crypto exchanges in the past year in Africa. P2P platforms such as Paxful and LocalBitcoins played significant roles in the region. They both accounted for 1.2% of the continent’s crypto transactions. Paxful’s co-founder and COO, Artur Schabak, said:
“Crypto products are getting more user-friendly, so they can onboard more people into the crypto economy and help them see that crypto is faster, cheaper, and more convenient.”
Crypto adoption is also popular because digital currencies provide a faster and more convenient way of paying for international commercial transactions.
Image Credits: Pixabay
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