Stablecoins now contribute up to nearly half of crypto transactions in Sub-Saharan Africa according to reports from Chainalysis. Notably, the New York-based analytics company cites currency devaluation as the reason for the surge in stablecoin transactions.

According to Chainalysis, “Sub-Saharan Africa leads the world in DeFi adoption, likely driven in part by a growing need for accessible financial services in a region where only 49% of adults had a bank account as of 2021, according to the World Bank. Drawing on its position as a frontier for financial innovation and inclusion, Sub-Saharan Africa is emerging as a global model for how crypto can drive real-world impact, especially in areas underserved by traditional financial systems.”

Stablecoin Transactions Contribute 43% of Sub-Saharan Africa Volume: Chainalysis’ Metrics

Several findings from the analytic company’s study include:

Nigeria is a top proponent for crypto adoption (2nd position) globally, recording $59 billion in crypto transactions from June 2023 to June 2024. Interestingly, over 80% of these transactions in this country had values of less than $1 million. Accordingly, this points to the preeminence of smaller retail transactions in the country.

Also, Nigeria recorded the most total stablecoin transactions with Chainalysis connecting this metric to the depreciation of the Naira.

“As the naira depreciates, we can see a rise in stablecoin inflows for transactions under $1 million, with more pronounced activity during periods of significant currency devaluation,” said Chainalysis.

Meanwhile, Ethiopia is the #26 country by crypto adoption globally, according to Chainalysis findings. In addition, Ethiopia is Africa’s fastest-growing market for small-volume stablecoin transactions. Chainalysis also cited local currency value depreciation as why crypto adoption is surging in Ethiopia.

Furthermore, Kenya, ranked 28th while South Africa ranked 30th globally by crypto adoption. “Africa’s largest economy, South Africa has established itself as one of the continent’s largest cryptocurrency markets, receiving approximately $26 billion in value over the past year. South Africa is seeing notable growth in licensed companies and increased institutional-sized activity,” said Chainalysis.

In Conclusion

Crypto, especially stablecoins, is reshaping African finance. “Although it represents a relatively small portion of the global crypto economy, Sub-Saharan Africa is experiencing remarkable momentum. Nigeria and South Africa are leading the way, driving substantial on-chain activity and positioning the region as an increasingly influential hub for cryptocurrency adoption and financial technology,” emphasized Chainalysis.