Cryptos are massively adopted in Africa
The information comes from a report by Chainalysis, which looked into adoption of cryptoassets in Africa. We already knew that P2P transactions had completely exploded over the summer, especially for Bitcoin (BTC). And centralized exchanges have also positioned themselves in this promising new market. As the analysis explains, volumes remain comparatively low compared to other continents, but adoption is also happening on a more individual level:
“Africa has the smallest crypto economy of any region we analyzed, at just $ 8 billion [en crypto-actifs] received last year. […] But this relatively low activity is creating value game-changing for users in the regionbecause they are experiencing economic instability. “
“Small” transactions (less than $ 10,000) indeed represent an important part of African cryptocurrency activity. If we compare them to other regions of the world, the African continent comes out on top:
Share of crypto activities representing less than $ 10,000. Source: Chainalysis
A significant number of users use cryptocurrencies to send funds from other parts of the world to Africa. The services offered by P2P exchanges are also used for transfers from one African country to another. Finally, cryptocurrency also serves as a bulwark against inflation, in order to guard against the loss of value of local fiat currencies.
👉 Discover our guide: How to buy Bitcoin (BTC)?
Binance claims the biggest market share in Africa
But if P2P transfers have exploded in Africa, we must not neglect centralized exchanges, which are now well established. Binance has always had the highest number of users, but it widened the gap with other platforms since the start of 2020:
Top 10 services sending cryptocurrency from or to Africa. Source: Chainalysis
According to Adedeji Owonibi, of the Nigerian analysis firm A&D Forensics, this is no surprise:
“When Binance came to Nigeria, it gave a lot of people the opportunity to buy and trade [des cryptos]. I was able to perform crypto-fiat transactions which were previously inaccessible. They have more liquidity than other exchanges in the region, they recruit local community managers […] and they provide free rewards for people who sign up. “
Binance has been showing its interest in Africa for several months. Almost a year ago, the exchange added the Nigerian naira and confirmed its desire to open up to other local economies. Binance CEO Changpeng Zhao said at the time: “Africa has shown one of the highest demands and concrete cases of extensive use for cryptocurrencies ”. More recently, the exchange announced the launch of a crypto-fiat payment application aimed at the African market: Bundle.
👉 Also read: Binance joins the Blockchain Association … And ousts Coinbase
Binance therefore seems well positioned for confirm its hegemony on the African market. Globally, the exchange is currently trading in volumes that exceed $ 3 billion daily.
👉 To go further: Would Binance’s BNB be undervalued?
Receive a crypto news recap every Sunday 👌 And that’s it.
About the Author : Marine Debelloir
Intrigued by Bitcoin for several years, I developed a passion for crypto-currencies and the innovative technologies that result from them. I like to unearth the most delicious information to share it with you and help democratize this fascinating universe. But I don’t stop there! I also like to analyze projects related to cryptos and blockchains, which fascinate me just as much.
All articles by Marine Debelloir.