Research by leading cryptocurrency exchange Bitget has revealed that crypto adoption in Africa has surged by 189% and the technology is quite popular amongst the continent’s young demographic.
According to Bitget’s research, the surge is driven by telegram-based crypto communities which have grown by 189% since early 2023.
The development reveals a gradual shift in global digital asset adoption from traditional Western jurisdictions to emerging economies like most African countries.
The Bitget research analyzed crypto-related telegram activity across multiple jurisdictions between January 2023 and August 2024. The study revealed that Africa’s crypto-focused Telegram groups have significantly expanded, adding over 3 million members driven by a young and dominant demographic of under 25, who make up about 56% of the total population.
The leading factors for crypto adoption are economic instability, limited access to banking services, the large number of tech-savvy youth, and the active advancement of innovation in digital finance,” the report states.
It is to be recalled that a Chainalysis report cited Nigeria as the leading African country in terms of crypto adoption and the second on the global list.
Looking ahead, the crypto market in Africa is projected to reach 54 million users by 2025, with Nigeria and South Africa leading the charge.
The Bitget research stressed the crucial role of mobile technology in driving adoption and Telegram with its recent integration of blockchain technology is also a key force in driving global crypto adoption.
Telegram, with its 950 million monthly active users, has become the go-to platform for cryptocurrency communities in emerging markets like India and Nigeria. India alone generates 84 million new downloads monthly, compared to just 6 million in the UK.
The dominance of emerging markets in global crypto adoption is a result of a combination of various factors.
The combination of a large young demographic, increasing mobile connectivity, and limited access to traditional banking services positions these emerging markets to maintain their leadership in cryptocurrency adoption for the foreseeable future.
What to Know
- Nigeria is the leading country in West Africa and the African continent in crypto adoption. Other notable African countries with high crypto adoption include Ghana, South Africa, Kenya, and Morocco.
- The free fall of the local currency in Nigeria is one of the driving factors behind the high adoption of cryptocurrency in the country. As the naira continues to lose value, smart investors and traders seek for alternative stores of value. Stablecoins which are crypto assets pegged to the value of the US dollar in a 1:1 ratio have become a favourite alternative for most Nigerians.
