Africa’s Cryptocurrency Market Grow By 1200% Despite Bear Market
Despite being a very difficult year for the digital asset and cryptocurrency markets, the year 2020-2021 has seen a phenomenal increase in crypto markets in Africa.
After surging to all-time highs last year, the value of many major cryptocurrencies has dropped sharply. Bitcoin has fallen by almost 60%. Ethereum is down by over 65%. For many investors and market participants, trust in the emerging space was rocked by the complete collapse of the Terra stablecoin in May.
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In Africa however, business is booming. According to Chainalysis, a blockchain forensics firm, Africa’s cryptocurrency market grew by over 1200% between 2020 and 2021. They added that four African countries – Kenya, Nigeria, South Africa, and Tanzania – all rank in the top 20 for global crypto adoption.
Unlike in other countries also, the growth was powered by individual adaptation rather than institutional.
Chainalysis reported that African markets see “a bigger share of [their] transaction volume made up of large retail and small retail-sized payments than the global average.” This indicates “higher grassroots adoption amongst everyday users.”
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It’s not the first Marketcap Trainers has highlighted the sharp growth of digital assets in Africa. A few weeks ago, a report by United Nations Conference on Trade and Development (UNCTAD) says that 8.5 per cent of the population or 4.25 million people own cryptocurrencies in Kenya.
Cryptocurrency in Africa has picked up a lot of steam in the last few years.
From Zimbabwe, Nigeria, Botswana, Ghana to the largest yet struggling part of Africa-Kenya. It is not surprising to know how Kenyans have made whopping profits out of cryptocurrency trading without migrating to any other country.