Nigeria: The Leading Crypto Market in Sub-Saharan Africa
According to the upcoming Geography Report by Chainalysis, while Sub-Saharan Africa accounts for only 2.3% of global transaction volume, crypto has become an integral part of daily life for many residents in key markets. Among these countries, Nigeria stands out as the epitome of crypto adoption.
Nigeria’s Dominance in the Region
Nigeria is the largest crypto market in Sub-Saharan Africa, with transaction volumes reaching nearly $60 billion between July 2022 and June 2023. This figure represents almost half of the region’s total transaction volume during the same period, which amounted to $117.1 billion. South Africa follows as the second-largest market with traded volumes exceeding $20 billion, while Kenya, Mauritius, and Ghana complete the top five.
Sub-Saharan Africa’s Preference for BTC
Chainalysis data reveals that residents of Sub-Saharan Africa consider Bitcoin (BTC) as an alternative store of value. With a regional volume share of 9.3%, Sub-Saharan Africa surpasses all other regions, including North America and Eastern Europe. The region’s attraction to cryptocurrency can be attributed to rising inflation and debt in many countries, making it an appealing means of preserving savings and achieving financial freedom.
Shift towards Stablecoins
Although BTC remains the dominant crypto asset in the region, there appears to be a growing interest in stablecoins. Moyo Sodipo, co-founder of Nigerian exchange Busha, suggests that the decline in BTC’s price may be driving users towards stablecoins as they seek diversification. However, despite market fluctuations, crypto activity in the region remains robust.
Hot Take: Nigeria Leads Crypto Adoption in Sub-Saharan Africa
Nigeria stands out as the frontrunner in crypto adoption among Sub-Saharan African countries. With significant transaction volumes and a growing interest in stablecoins, Nigeria’s crypto market reflects its residents’ reliance on digital assets for storing value and achieving financial stability. As the region faces economic challenges such as inflation and debt, cryptocurrencies provide an attractive alternative. This trend highlights the potential for further crypto penetration across Sub-Saharan Africa in the coming years.
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