A recent report from Chainalysis showed that even though only 2% of the global crypto transactions originate from Sub-Saharan Africa, it has some of well-developed crypto markets.
Furthermore, the report said that as compared to other regions, the massive usage of P2P platforms and the retail markets of Sub-Saharan Africa make it quite unique.
Chainalysis, the blockchain intelligence firm, revealed that the total transaction volume of Sub-Saharan Africa between July 2021 and July 2022 was around $100.6 billion.
It said that the volumes are the lowest in all of the regions that have been surveyed so far. As compared to the preceding period, the on-chain volumes show a growth of 16%.
Nonetheless, the report says that they are still just 2% of the total global crypto activity.
Despite the limited transaction volume, the blockchain intelligence firm said that the region has some of the most developed crypto markets all over the world.
A deeper analysis disclosed that the crypto markets in Africa are some of the most developed ones, with deep integration and penetration of crypto in daily financial activities for a number of users.
In order to support the assertions about Sub-Saharan African region, Chainalysis shed some light on the structure of the crypto market and how it is different from that of the other regions.
The report explained that the region is able to distinguish itself from the global crypto market because of its high usage of P2P platforms, along with its retail market.
The blockchain analysis firm said that 6.4% of the transaction volume comprised of retail-sized transfers below $10,000, which was higher than any other region.
The number of individual transfer carried out also highlight the role of retail. 95% of all transfers made in the region are retail transfers.
A closer look shows that 80% of the transaction volume comprises of small retail transfers that are under $1,000, which is higher than any other region.
Apart from that, the region has also recorded a rise in the number of users who want to use peer-to-peer (P2P) exchanges.
The report said that the P2P volumes in the region make up about 6% of the total volume of crypto transactions in Africa.
As far as the future use of crypto in the Sub-Saharan African region is concerned, the report said that the usage is expected to continue growing.
This is due to the fact that residents are facing a number of issues and cryptocurrencies have proven that they can help in resolving a number of them.
This includes using economic volatility to preserve savings, which has become immensely difficult for Africans.
Moreover, cryptocurrencies also help people in conducting cross-border transactions in areas that have tough capital controls implemented.
The cross-border use of crypto is not just limited to the African region, as many other countries around the world are now exploring this aspect because of its speed, convenience and low cost.