Africa’s cryptocurrency market marches to its own beat

Majority of Africans in the crypto scene use cryptocurrencies for economic and commercial purposes, deviating from the trend observed in developed markets, where crypto assets are mainly used to diversify portfolios.

Trends indicate that many African youths that are unemployed or lacking economic opportunities are turning to cryptocurrencies to build and preserve wealth, while in other countries, such digital assets are used only to multiply existing wealth.

This trend reflects in the volume and nature of transactions recorded in Africa, which significantly deviates from the rest of the world, according to cryptocurrency research firm, Chainalysis’s latest Geography of Cryptocurrencies report, released last week.

In sub-Saharan Africa, small transactions, less than $1,000, accounted for 80 per cent of all transfers recorded on crypto exchanges and wallets in the past year, which is greater than any other region globally, the report reveals.