What You Need to Know About Africa’s Cryptocurrency Startup Culture: 11X This Year

The Africa Blockchain Report 2021 by Standard Bank and CV VC (Crypto Valley Venture Capital) revealed that African cryptocurrency businesses experienced more venture capital in 2022 Q1 than in 2021 Q1.

Compared to the same timeframe in 2021, blockchain companies in Africa raised about $91 million in 2022 Q1, translating to a 1,668% cash inflows surge. While the continent is yet to see a blockchain mega-deal, the report expects crypto-unicorns to emerge within 2 – 3 years.

Nigerian firms represent most of 2022 funding, accounting for about 39.05% of funds collected. Seychelles comes 2nd with 26.06%, whereas Kenya and South Africa followed with 15.75% and 14.87%, respectively.

The Growing African Crypto Market

Africa has seen cryptocurrency adoption surging due to limited financial institution access and inflation. KuCoin crypto exchange’s study showed that 35% of Nigerians (aged between 18 and 60) traded digital coins over the past six months. The research revealed about 17.36 million individuals invested around 50% of their financial savings in crypto.

However, the most populated African nation isn’t the only one with a high crypto-acceptance level. The CAR (Central African Republic) made BTC a legal tender. Moreover, Kenya leads the globe in P2P crypto trading.

Another study shows cryptocurrency usage in Africa surged by 1,200% between July 2020 and June 2021. That made the continent the leading fastest-growing as far as crypto adoption globally is concerned.

Increasing interest in cryptocurrency startups might trigger the advent of African cryptocurrency unicorns. The report suggested that most venture capital funding went to crypto-exchanges and fintech startups.

CV VC’s Africa Managing Director Gideon Greaves stated that Blockchain is the most funded sector in Africa. Moreover, venture capital companies recently devoted $23 million to Mara crypto trading platform establishment. The exchange will offer smooth crypto trading ways, launching its operation in Nigeria and Kenya before exploring other nations on the continent.

Why is Crypto Adoption Flourishing in Africa?

Research published in April showed Nigeria’s limited financial services boosted crypto ownership. The study discovered most Nigerians started accepting crypto for transferring and storing assets.

Moreover, the Nigerian President launched eNaira in October last year. It’s the nation’s central bank digital currency. Several governments will use CBDCs to reduce operating costs and speed cross-border transactions.