In recent times, Africa has witnessed a massive drive toward crypto adoption leading to exponential growth on crypto trading platforms especially P2P platforms.
In light of this, we took a look at the markets where a lot of this adoption is taking place by evaluating recent data published by LocalBitcoins – a leading P2P Bitcoin marketplace in Africa.
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SEE ALSO: The Reserve Bank of Zimbabwe Drafts a Policy Framework to Regulate Cryptocurrencies
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Below is a breakdown of bitcoin adoption across the major markets in Africa:
Bitcoin Trading in Kenya
Kenya is one of the 3 largest bitcoin markets in Africa alongside Nigeria and South Africa.
Below are some stats on bitcoin trading in Kenya on LocalBitcoins:
- 80% increase in signups in 2020
- Over 17, 000 Kenyans traded on LocalBitcoins in February 2021 alone
- More than KES 100 million (Approx. $930, 000) is traded weekly on LocalBitcoins
- MPESA is the most common payment method followed by PesaLink
- Most users are below 30 years old
- Most common use case for Bitcoin is remittances
Bitcoin Trading in South Africa
South Africa is one of the leading markets for LocalBitcoins in Africa.
Below are some stats on bitcoin trading in South Africa on LocalBitcoins:
- Over 37, 000 South Africans registed on LocalBitcoins in 2020
- More than $57 million was traded on LocalBitcoins in 2020 – a 25% increase from 2019
- A majority of users are below 34 years old
- At least 65% of users trade at least once a month
- 35% of users trader at least once a week
- High unemployment is the main driver for activity as users seek extra income sources
- A majority of users use bitcoin for investing and trading for profit
Bitcoin Trading in Nigeria
Nigeria is the largest P2P market in the world despite the country’s central bank ban on crypto exchanges.
Below are some stats on bitcoin trading in Nigeria on LocalBitcoins:
- Nigeria is the largest P2P bitcoin marketplace after surpassing the US
- Nigeria is the 5th largest bitcoin market in total trading volume globally
- The largest drivers for bitcoin adoption is the devaluation of the Naira and remittances in and out of the country.
Bitcoin Trading in Zimbabwe
Zimbabwe has the second-highest inflation after Venezuela, making bitcoin particularly interesting to Zimbabweans.
Below are some stats on bitcoin trading in Zimbabwe on LocalBitcoins:
- High inflation rates are driving users to adopt and use bitcoins
- LocalBitcoins saw over 125% increase in trading volume in Q1, 2021 alone
- The majority of Zimbabweans are using bitcoin for investment and trading amidst the tough economic situation in the country
- Zimbabwe has the most number of hodlers, or people who hold bitcoin for the long-term
While the above stats are in no way exhaustive of crypto adoption across the African continent, they do however point to an exponentially fast growing interest in digital assets largely due to economic challenges exacerbated by the global COVID-19 pandemic.
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RECOMMENDED READING: Paxful Hits A Major Milestone by Surpassing LocalBitcoins as the Largest P2P Bitcoin Marketplace with a 52% Market Share
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