Chainalysis is one of the major cryptocurrency research firms keeping an eye on global crypto transactions as well as crypto transactions in Africa. The firm recently published a report that claims that with an increase of over 55 percent in the month of June the yearly transaction reached a total of $316 million in the month of June. This is in addition to the fact that the monthly crypto transactions in Africa amount no more than $10000 a month.
Crypto transactions in Africa trend
Abolaji Odunjo is a local trader based out of Lagos who recently jumped onto crypto transactions in Africa bandwagon with Bitcoin payments to his vendors. He explains that the cryptocurrency realm is helping him grow his business with the peace of mind that his payments are end to end secure and seamlessly fast on top of that.
Odunjo furthers that his suppliers are based out of China and with Bitcoin payments he can now avoid the long tiring process of conversion of his local currency into Dollars for payments, not to mention the low fees on cryptocurrency transactions provide an additional bonus to the small-time vendor.
Though Bitcoin remains to be the industry leader, other currencies commonly used in crypto transactions in Africa include, BAT, BCH, BNB, BTC, BUSD, CRO, CRPT, DAI, ETH, GNO, GUSD, HT, HUSD, ICN, LEO, LINK, LTC, MCO, MKR, MLN, OMG, PAX, PAXG, TGBP, TUSD, USDC, USDT, WETH, ZIL, and ZRX.
The Chainalysis report explains that in the post-COVID-19 scenario many national currencies are losing their value along with a spike in prices owing to the current global conditions making it almost impossible for the small and medium business to make any saving. The situation is not better in somewhat stronger countries and currencies such as South African where the Rand (ZAR) is facing the same situation with up to 55% fluctuation at one point.
Most of the cryptocurrency transactions originating out of Africa are of small amounts, however, a collective transaction network of around $10000 has been observed. The region has yet to see major shifts in order to get past the economic hurdles but this is definitely a good step towards cryptocurrency adaption.