Even though it remains the smallest "crypto-economy" in the world, sub-Saharan Africa shows that virtual currencies can be a practical solution to economic challenges like mitigating the effects of inflation, facilitating cross-border trade, and improving financial inclusion.

Cryptocurrency transactions in sub-Saharan Africa reached $205 billion between July 2024 and June 2025, according to a study published on Wednesday, September 10, by Chainalysis, a company specializing in blockchain data analysis.

This figure, which represents an increase of about 52% compared to the July 2023-June 2024 period, makes the region the third most dynamic in the world for crypto transactions, just behind Asia-Pacific and Latin America. However, the total value of transactions recorded south of the Sahara only accounts for about 2% of global cryptocurrency transactions during the period.

At the national level, Nigeria leads with over $92.1 billion in transactions, nearly triple the volume of the second-ranked country, South Africa. Ethiopia, Kenya, and Ghana complete the top five. Nigeria's dominance is attributed not only to its large, tech-savvy youth population but also to persistent inflation and foreign currency access issues that have made stablecoins and bitcoin an attractive alternative.

In March 2025, Nigeria recorded a record transaction volume following a naira devaluation that led to increased cryptocurrency adoption. More users are turning to cryptocurrencies to hedge against inflation, and purchases in local currency are becoming more significant, as fiat currency is needed to acquire the digital assets.

The study also reveals that the region has become a key retail market. An analysis of transaction amounts shows that the share of transfers under $10,000 in sub-Saharan Africa is larger than in the rest of the world. In the region, over 8% of the total value transferred between July 2024 and June 2025 was less than $10,000, compared to 6% for the rest of the world. This suggests that cryptocurrency adoption trends are closely linked to financial inclusion challenges. Despite significant progress in recent years, particularly with mobile money, a large number of sub-Saharan adults remain unbanked, creating fertile ground for alternative financial technologies.

Growing Use in Trade and Business

Nigeria and South Africa, the region's two largest markets, also show significant activity among entities and institutions, likely due in large part to the growth of the B2B segment, which facilitates cross-border payments. A deeper analysis of trades reveals that stablecoins are frequently used in high-value commercial transactions between Africa, the Middle East, and Asia.

In South Africa, an advanced regulatory framework has fostered greater institutionalization of the cryptocurrency market. With hundreds of crypto-asset service providers already licensed, the country has provided the regulatory security that institutional players need to engage meaningfully. Financial institutions are also actively exploring options, from custody to stablecoin issuance, which demonstrates a shift from exploratory interest to active product development. Entities like Absa Bank are at an advanced stage of developing crypto products for their clientele.

Bitcoin is King

The study also shows that bitcoin dominates cryptocurrency purchases in sub-Saharan Africa. The leading cryptocurrency accounts for 89% and 74% of purchases in Nigeria and South Africa, respectively. This suggests it is not only considered a store of value in the region's markets but also a default entry point for exposure to crypto assets, especially in environments where fiat currency is subject to some level of volatility and access to other investment vehicles is limited.

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In Nigeria, where access to the U.S. dollar is strictly controlled and inflation remains high, bitcoin has become a widely recognized alternative financial hedge and savings tool. Chainalysis indicates that sub-Saharan Africa now represents an important testing ground for determining the real utility of cryptocurrencies in protecting against inflationary effects, facilitating cross-border trade, and promoting financial inclusion where the traditional banking system is non-existent or inadequate. Alongside traditional economic and speculative patterns, the region is demonstrating how digital assets can serve as adaptive financial technologies and practical solutions to persistent challenges in difficult economic environments.

Walid Kéfi