Sub-Saharan Africa Crypto Trading Soars Amidst Currency Challenge

Key Points:

• Nigeria is leading global DeFi adoption, receiving over $30 billion in DeFi transactions last year.
• Sub-Saharan Africa crypto market grew to $125 billion between July 2023 and June 2024, with 43% of transactions involving stablecoins.

Nigeria is at the forefront of adopting decentralized finance, according to the trends in Sub-Saharan Africa, as indicated by a new report by Chainalysis.

Read more: UAE Crypto Adoption Leads Middle East With 72% Rate

Stablecoins Dominate Sub-Saharan Africa Crypto Market

According to the report, Nigeria reportedly received over $30 billion in DeFi transactions last year, cementing its position at the forefront of this fast-growing sector.

For Sub-Saharan Africa crypto trading, while accounting for just 2.7% of global transactions between July 2023 and June 2024, the modest on-chain value in the region increased to an estimated $125 billion, up $7.5 billion on the year. The low share is because it has a comparatively low aggregate gross domestic product compared with other areas, yet the crypto- and DeFi-market adoption of the region has since been rather outstanding.

Meanwhile, Nigeria’s recorded cryptocurrency transaction value in the same period stood at $59 billion, 85% of which were transfers under $1 million, reflecting the dominance of retail and small business users.

Nigeria and Ethiopia See Rapid Growth in Retail Stablecoin Transfers

One of the most important drivers in Sub-Saharan Africa crypto usage has been the rise of the so-called stablecoins, which today comprise 43% of all crypto transactions in the region.

Stablecoins have been an important tool for citizens in countries such as Nigeria and Ethiopia, where sharp devaluations have made stablecoins an attractive alternative against local volatile currencies. Of those, Ethiopia showed the most significant increase in retail-scale stablecoin transfers with 180%, making it the fastest-growing market for such transactions in Africa.