Africa’s crypto market has grown in the last year

Tokenization of financial flows is vastly cheaper than building nations. On the back of it, the process itself can spur the growth of real assets. This is where some countries in Africa are finding themselves.

Africa surveyed as the next crypto frontier

Africa is the second-most-populous continent in the world, with around 1.3 billion people. Due to historic issues with colonialism, civil wars, and harsh terrains, African countries have suffered from infrastructure problems for a long time. This has made financial services less accessible, leading to around 57% of the population remaining unbanked.

At the same time, underdeveloped infrastructure has made Africa a perfect vector for cryptocurrencies, which only require a smartphone to access blockchain networks. We had previously covered Africa’s most populous nation, Nigeria, as the vanguard of crypto adoption for the entire world.

Thanks to the latest research by Chainalysis Insights, we can take a zoomed-out picture of Africa’s crypto adoption and its likely global impact.

Image: Chainalysis Insights

African wealth vs. crypto adoption rate

According to the World Bank, the median GDP per capita in Sub-Saharan Africa is $1,483. Compared to the European Union, which has a GDP per capita at $33,927, this makes African wealth output 22X lower. Correspondingly, the Chainanalysis report found that Africa’s cryptocurrency market share is the smallest.

In raw numbers, this translates to $105.6 billion worth of crypto assets between July 2020 and June 2021, accounting for 1,200% crypto value growth. Using this metric, Africa has topped peer-to-peer (P2P) payment platforms in terms of transaction volume across all regions (…)

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