According to Arcane Research, African countries such as Nigeria, Kenya, Egypt, Mauritius, Uganda, Ghana, Seychelles and South Africa are among the leading nations for crypto adoption globally.
With crypto adoption set to double in Africa in the coming years, one might wonder which cryptocurrencies are the most widely used on the continent. This article covers the 10 most popular coins and tokens in Africa, along with the top 5 countries in Africa to invest in, start your business or grow your crypto network.
Bitcoin (BTC) – Official tender in CAR
For obvious reasons, Bitcoin is the most popular and valuable cryptocurrency in the world. Much of the global adoption of crypto has been due to the rise in the value of BTC. This also contributed to its popularity in Africa. Most businesses that accept cryptocurrencies for payments in Africa choose Bitcoin, and the same goes for retail investors. Recently, the Central African Republic (CAR) became the second country in the world to make bitcoin legal tender, the ` writes. Meanwhile, Nigeria ranks #1 globally in terms of the number of people searching for the keywords “bitcoin” and “crypto” on Google.
Ethereum (ETH) – growing fast
Ether or ETH has the second largest market cap among cryptocurrencies. It is one of the most used in Africa because of the Ethereum network. Ethereum’s smart contract capabilities enable the development of decentralized applications and platforms within its ecosystem. This has led to the emergence of decentralized finance, playable non-fungible tokens, and several other sectors on Ethereum. All Ethereum use cases contribute to its appeal in Africa. Since ETH is its original token, it has become increasingly popular on the continent. The rising value of ETH further contributes to this.
Solana (SOL) – Low fees for NFTs
Similar to Ethereum, the Solana network has smart contract features. But NFT trading has popularized its native cryptocurrency in Africa. The continent is one of the top destinations globally for NFT trading, which is likely to increase this year. A recent survey by Finder AU shows that Nigerians are most likely to buy NFTs, with 21.7% planning to buy and 13.7% of Nigerians already own NFTs. Nigeria and South Africa already have a significant percentage of their populations interested in digital assets. The Solana coin, which is currently the ninth largest cryptocurrency by market cap, has appreciated significantly in 2021 due to NFT trading. Although SOL’s value has dropped, it’s still a popular African choice, especially for NFT traders due to the low transaction fees on Solana’s blockchain.
BNB Coin – Low token transaction fees
BNB is the native token of BNB Chain (formerly Binance Smart Chain), the blockchain network created by Binance. Binance Exchange is one of the most widely used exchanges in Africa. Due to its widespread use, the associated BNB has also gained popularity. It also helps that trading fees on Binance are lower for those who hold BNB in their portfolio than those who don’t. Since launching the Binance Masterclass Education Series, Binance has educated over 541,000 Africans about cryptocurrency. Some of these events were held both offline and online for French speaking Africans.
Dogecoin (DOGE) – Number one meme token
The meme coin boom in 2021 catapulted Dogecoin into the top ten cryptocurrencies worldwide. With this and numerous tweets from Elon Musk about it, Doge has risen to become one of the most popular cryptocurrencies in Africa. Although it’s already 89% below its peak, Doge is still popular with Africans, and many are holding on and looking forward to when it will peak again. Several gambling sites in Africa accept Dogecoin and soon there will likely be a few more crypto casinos accepting DOGE as well.
Shiba Inu (SHIB) – meme token number two
Another token that benefited from the meme coin boom was Shiba Inu. Shiba Inu was launched in 2020, just before the bull market began, and its low price made it attractive to crypto investors who couldn’t afford more valuable cryptocurrencies like Bitcoin, Ethereum, etc. However, Shiba Inu has experienced a significant drop in value in recent months.
Cardano (ADA) – Partnerships with African countries
ADA is currently the sixth largest cryptocurrency by market. Cardano’s network is considered one of the alternatives to Ethereum due to its smart contract capabilities. Despite not being able to reach the ETH value level, the token has increased its popularity in Africa. This is largely due to Cardano’s partnership with African countries like Ethiopia, Tanzania, and Kenya. As the network helps African countries adopt blockchain technology for various purposes, the use of its tokens is also likely to increase. Many Africans find ADA’s low value per token compelling and present a low barrier to entry for many.
Tether (USDT) – The highest volume among the stablecoins
Stablecoins play an essential role in the crypto ecosystem. Unlike regular cryptocurrencies, which are volatile, stablecoins retain the same value. Tether (USDT) is one of the highest volume stablecoins and is very popular in Africa. Because it is pegged to the US dollar, many use it as a means of foreign exchange, particularly in countries where US dollars are much more difficult to obtain through official sources. It is also the currency of choice for many retail investors on the continent.
USD Coin (USDC) – the safest stablecoin?
The USD coin has become increasingly popular in Africa, especially among crypto traders. Like USDT, it is pegged to the US dollar, meaning its value is always $1. Traders use it as a bridge when switching from one volatile cryptocurrency to another. Those looking to save in USD as well sometimes use USDC to circumvent the challenges of traditional financial institutions.
Dash (DASH) – Still very popular
Dash cryptocurrency was one of the first virtual assets accepted by traders in Africa. Although it doesn’t have a large market cap like the other cryptocurrencies on this list, it is quite popular on the continent.
Top 5 African countries for crypto
South Africa – New cryptocurrency laws are coming to South Africa, an African country that has often been credited with pioneering crypto.
Mauritius – The popular Indian Ocean island has received crypto-friendly legislation. There is no tax for crypto transactions in Mauritius either.
Nigeria – The country’s crypto sector is thriving despite a ban in 2021. Bloomberg wrote that Nigeria is the world’s most inquisitive nation when it comes to issues related to investing and buying crypto. In 2023, it looks like Nigeria’s stock exchange will launch a blockchain-enabled exchange, according to Bloomberg – but how far they will get is still unclear.
Kenya – When it comes to highest daily peer-to-peer transaction volume, Kenya stands out as the winner. Many Africans expect peer-to-peer crypto transfers to be much cheaper than other deposit methods, but in reality, both e-wallets and credit cards for buying crypto cannot have additional exchange fees.
Seychelles – For crypto exchanges looking for a jurisdiction that allows customers from around the world, Seychelles and the Bahamas usually stand out. While regulation is minimal and exchanges only have to pay a small fee and do some paperwork, getting a crypto license in Seychelles is no more difficult than getting a bank account in Malta, quite the opposite – much easier .
Finally
The high adoption rate of crypto in Africa is due to reasons like inflation in several countries, insufficient banking infrastructure, international settlements, etc. Although adoption is expected to increase, there are several challenges, identified by three, low internet penetration, drag and poor power.
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