On October 2, 2024, a report by Chainalysis revealed that stablecoins now account for approximately 43% of total transaction volume in Sub-Saharan Africa, driven largely by local currency devaluation.
Nigeria leads this trend, with $59 billion in crypto transactions recorded between July 2023 and June 2024. Notably, 85% of these transactions were under $1 million, indicating a strong presence of retail investors.
The Nigerian Naira has significantly depreciated, prompting increased stablecoin inflows as individuals seek to hedge against currency losses. Ethiopia is also seeing a rapid rise in stablecoin adoption, with a 180% increase in retail-sized transfers year-over-year.
In South Africa, stablecoins have surpassed Bitcoin in popularity, reflecting a growing institutional interest in using these assets to manage liquidity and mitigate currency volatility.
These developments highlight the increasing importance of stablecoins in regions facing economic instability, positioning Africa as a potential leader in global cryptocurrency adoption.