African cryptocurrency market has grown over 1,000% annually (report)

Cryptocurrency adoption in Africa is booming, according to a new report from cryptocurrency analysis firm Chainalysis. Between July 2020 and June 2021, the African cryptocurrency market grew by 1,200% to a whopping $ 105.6 billion (roughly Rs. 775 crore), according to a recent report from Chainalysis. Kenya, Nigeria, South Africa, and Tanzania all feature in the top 20 countries in the Global Crypto Adoption Index, and together African nations represent the third-largest growing cryptocurrency market. the fastest in the world. The report also noted that the bulk of these crypto transactions are not conducted by large institutional investors, but rather by buyers and small and medium-sized retail companies.

According to the report by market research firm Chainalysis, Africa is seeing many smaller transfer sizes, indicating greater adoption of cryptocurrency trading locally.

“Interregional remittances also account for a larger share of the cryptocurrency market in Africa than any other region at 96% of all transaction volume, compared to 78% for all regions combined,” the report said.

The study further observed that facilitating crypto payments using peer-to-peer (P2P) platforms is more popular in Africa than in other countries. P2P platforms are online investment gateways that allow borrowers to attract lenders to identify and purchase loans that meet their investment criteria. Using these platforms, Africa-based crypto buyers and investors are getting into digital currency trading.

“Some countries, like Nigeria and Kenya, have made it difficult for customers to send money to cryptocurrency companies from their bank accounts, either by passing laws or simply advising banks to do not authorize these transfers. However, this is not a problem for P2P platforms, which are not custodians and allow customers to exchange money for cryptocurrency with each other, ”explained Chainalysis.

So far, Vietnam, India, Pakistan, and Ukraine are in the top four in the rapid adoption of crypto. The cryptocurrency adoption rate increased by 880% in 2020 in these regions, according to a report released earlier this month.