According to CryptoPotato, Sub-Saharan Africa accounts for only 2.3% of the global cryptocurrency transaction volume, accumulating an estimated $117.1 billion in on-chain value from July 2022 to June 2023. Nigeria ranks second on Chainalysis' Global Crypto Adoption Index, with other countries in the region such as Kenya, Ghana, and South Africa also ranking high on the index.
Bitcoin holds more significant sway in Sub-Saharan Africa than any other region, serving as an alternative store of value amidst mounting inflation and debt. Ghana's inflation, for example, surged to 42.5% in June 2023, marking the highest level in two decades. As a result, many Ghanaians have turned to Bitcoin, and similar economic challenges in Nigeria, Kenya, and South Africa have led to substantial grassroots adoption of cryptocurrency.
While Bitcoin was highly popular in 2019 and 2020, there is now a growing interest in stablecoins for diversification, according to Moyo Sodipo, Co-Founder and CPO of Nigeria-based exchange Busha. The demand for hedging against the devaluation of local currencies and economic decline remains strong, particularly in the context of the Nigerian Naira's devaluation and ongoing economic challenges since COVID-19. Interest in Bitcoin and stablecoins has risen as the Naira's value has declined, with higher spikes in interest around May and November 2022 likely driven by events like TerraLuna and FTX's collapses rather than local economic factors. Altcoin interest has also been growing in the region, with fluctuations in market dynamics leading to buying frenzies.
