Africa: Cryptocurrency transactions reached $100.6 billion in sub-Saharan Africa, between July 2021 and June 2022

Cryptocurrency transactions reached $100.6 billion in sub-Saharan Africa between July 2021 and June 2022, according to a research note published in late September by Chainalysis, a company specializing in blockchain data analysis.

Although it is up 16% compared to the period July 2020 – June 2021, this amount represents only 2% of cryptocurrency transactions recorded globally.

Chainalysis notes, however, that despite its low share of cryptocurrency transactions, sub-Saharan Africa is home to some of the most developed markets on the planet. These include Nigeria and Kenya, which rank 11th and 19th respectively in the Global Cryptocurrency Adoption Index compiled by Chainalysis.

South Africa, which tops the ranking of countries in the region in terms of gross cryptocurrency transaction volume, is also well ranked in this index (30th, world rank).

The Sub-Saharan African crypto landscape is characterized by a predominant retail market and heavy use of P2P platforms. Retail transfers represent 95% of all transfers. If we limit ourselves to retail transfers under $1,000, this proportion rises to 80%.

According to interviews conducted by Chainalysis with cryptocurrency users in sub-Saharan Africa, the dominance of the retail market is a reflection of the choice of many young people in the region to turn to cryptocurrencies as a means of preserving and building their wealth, for example. opposition to other countries where young people are using cryptocurrencies as a way to multiply their existing wealth.

“We see a lot of traders who trade on a daily basis to make ends meet. We do not have large institutional level traders in Sub-Saharan Africa. The people driving the market here are individuals,” says Adedeji Owonibi, founder of Convexity, a Nigerian blockchain product consultancy.

Chainalysis also points out that cryptocurrencies are one of the most used tools for cross-border money transfers and commercial transactions, while estimating that the use of cryptocurrencies in sub-Saharan Africa will continue to grow as long as the inhabitants of the region are face problems that these virtual currencies can solve, such as preserving savings in the face of economic volatility and the ability to transact across borders in places with tight capital controls.