The latest research report from blockchain analysis firm, Chainalysis reveals that P2P transfers make up 95% of all crypto transfers in sub saharan Africa.
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Chainalysis noted that Sub-Saharan Africa’s total crypto transaction volumes of $100.6 billion seen between July 2021 and June 2022 are the least of any region that has been surveyed. While the on-chain volumes during this period are 16% higher than the preceding period, the report nevertheless states that Sub-Saharan Africa only accounts for 2% of the global crypto activity.
In addition, Sub-Saharan Africa likely has some of the most developed cryptocurrency markets globally. The Chainalysis report said:
“deeper analysis reveals that Africa contains some of the most well-developed cryptocurrency markets of any region, with deep penetration and integration of cryptocurrency into everyday financial activity for many users.
To help buttress these assertions about the region, the report points to the structure of the region’s crypto market and how this distinguishes Sub-Saharan Africa from other regions. As explained in the report, the retail market as well as an “outsized usage of P2P platforms” is what separates this region from the rest of the global crypto market.
“Retail-sized transfers below $10,000 makeup 6.4% of its transaction volume, more than any other region. The role of retail becomes even more apparent when we look at the number of individual transfers. Retail transfers make up 95% of all transfers, and if we drill down to just small retail transfers under $1,000, the share becomes 80%, more than any other region,” the report stated.
Also, the region has seen an increase in the number of users that prefer to use peer-to-peer (P2P) exchanges. As stated in the report, the region’s P2P volumes alone are thought to “account for 6% of all cryptocurrency transaction volume in Africa.”
Concerning Sub-Saharan Africa’s projected future use of crypto, the report said:
“Overall, we expect cryptocurrency usage in Sub-Saharan Africa to continue growing as long as residents face issues crypto has proven it can solve for them, such as preserving savings through economic volatility and enabling cross-border transactions in places with strict capital controls.”