A study reveals that stablecoins accounted for 43% of cryptocurrency transactions in the Sub-Saharan Africa region in 2024, surpassing Bitcoin's market share of 18.1%.
Transaction growth and Nigeria's dominance
According to a study, stablecoins accounted for 43% of cryptocurrency transactions in the Sub-Saharan Africa (SSA) region in 2024, more than double that of Bitcoin (18.1%). Nigeria and South Africa lead SSA in stablecoin adoption, while Ethiopia, Zambia, Mauritius, Kenya, and Ghana have seen the largest increases in stablecoin usage.
Ethiopia and Zambia both recorded year-on-year (YOY) growth in stablecoin usage exceeding 100%. The report cites the 30% devaluation of Ethiopia's birr in July last year as a possible reason for the 180% increase in stablecoin usage in the country.
As shown in the research data, small retail transactions (under $1,000) increased by 12.6%, while large retail transactions ($1,000 to $10,000) rose by 10.6%. Large institutional transactions ($10 million and above) saw minimal growth at 0.2%, while professional transactions ($10,000 to $1 million) experienced a significant increase of 60.4%. Overall, the data highlights a significant increase in smaller retail and professional stablecoin transactions.
Meanwhile, Nigeria has the largest inflow of stablecoins of any country in SSA, with $20 billion, accounting for 40% of the region's total inflow. In addition to the increased use of stablecoins, Nigeria has also witnessed a notable rise in decentralized finance (DeFi) activities.
"Alongside the rise of stablecoins, DeFi is experiencing a critical moment in Nigeria, reflecting the broader trend of Sub-Saharan Africa as a global leader in DeFi adoption. Nigeria's cryptocurrency activities are largely driven by small-value retail transactions and professional scale, with about 85% of transfer value received under $1 million," the research report states.
The report concludes that as legal frameworks become clearer, institutional adoption of DeFi is expected to increase. This could pave the way for a hybrid model where decentralized platforms operate under centralized oversight, creating new opportunities for traders to pursue profits and arbitrage.
