According to a recent report by crypto exchange KuCoin, the number of people turning to crypto across Africa has increased significantly, with their data indicating a 2, 467.2% spike between 2021 and 2022 – part of a set of data highlighting the growing adoption of digital currencies across Africa.
Besides the number of transactions, the report also determined that:
Crypto transactions in Africa have increased by 1, 250-2, 670% over the past year
Crypto transactions in Africa constitute 2.8% of global volumes
The average number of monthly transactions increased by 1,386.7%
While the average amounts being transacted in the last year has declined, KuCoin points to this as a sign that adoption is taking place not only for large transfers, but for small payments as well.
The report identity’s Cairo, Cape Town and Lagos as the drivers of this growth across the continent. Kenya is singled out as leading growth in East Africa, with 64% more crypto transactions than the rest of that region.
Across the continent, residents are flocking cryptocurrencies to mitigate against inflation, pointing to ‘the desire of the population to react quickly to any changes in the exchange rate of national currencies in countries with high rates of inflation and devaluation.’
Inflation in 2021 was found to be highest in Sudan (260%) and Ethiopia (66%) which experienced political instability severally across the year. Even in cases where inflation was not as high such as Algeria (6%), Africans still looked to crypto to preserve the value of their savings.
With 88% crypto transactions being cross-border, fintech has drawn users due to low fees. In many cases, users pay less than 0.01% of the overall amount of the transaction transferred in cryptocurrencies.