- Countries such as Nigeria, currently leading Africa in crypto, have taken significant steps in utilizing the potential of crypto
- African DeFi organizations such as Yellow Card have made significant strides, and various African startups have captured the hearts of investors. The bear market is still here
- Despite the global crash in cryptocurrency and the stagnation experienced by NFTs, DeFi and Web3 in Africa’s ecosystem have continued to strive through the difficulties
The crypto adoption rate in Africa is now recognized and acknowledged globally. According to analysis, Africa’s crypto ecosystem is rapidly growing and will soon beat developing continents if its momentum continues. Africa has embraced crypto and welcomed DeFi organizations such as Yellow Card, Mara and many more.
The NFT marketplace is also affected as various African entrepreneurs take a stand in creating a platform where African NFT artists can showcase their talent, skills, and cultures.
All these factors represent the strength, ingenuity, and resilience the African community can demonstrate. Despite the upcoming crypto winter and the bear market, Africa has proven insight into cryptocurrency’s long-term effects.
The world initially brought blockchain technology into Africa to expand and educate its citizens and has now turned the tables. Africa currently has the potential to lead the world by example on how the world should utilize web3 technology.
Story Behind the headlines
Despite the global crash in cryptocurrency and the stagnation experienced by NFTs, DeFi and Web3 in Africa’s ecosystem have continued to strive through the difficulties. Despite the reports and headlines praising Africa’s efforts as a continent in terms of its crypto adoption rate.We need to acknowledge that these numbers comprise individual efforts. Only a few African governments have truly embraced cryptocurrency and the NFT marketplace. Countries such as Nigeria, currently leading Africa in crypto, have taken significant steps in utilizing the potential of crypto.
It is among the first few countries t create its own CBDC, eNaira. What might seem like a path to progress covers a hidden truth most individuals are not ready to face. Nigeria has one of the highest Adoption rates in Africa because of its currency’s financial instability.
A report stated that there was an estimated decrease in the economy of Nigeria, averaging 3.2% from 2022 to 2023, due to the persistently low oil production and rising insecurity.
When money becomes a problem in a country, everything else soon falls apart. The move to cryptocurrency was an attempt to salvage one’s skin and acquire an additional income. Slowly but gradually, many individuals saw the potential of Nigeria, giving rise to what is known as the eNaira.
Not all backstories stem from tragedy; take South Africa. Its financial stability is far better than most African countries. Yet somehow, they have significantly advanced in terms of cryptocurrency. South Africa is one of the few in Africa’s crypto ecosystem to have the support of its government.
It even recently announced a new crypto regulation framework that will guarantee that all crypto transactions within the country are safe and legal. Despite not being the first African country to adopt crypto into its ecosystem, it still represents itself. It showed other African countries a nation can profit from the crypto trading habits of its citizens.
How does Africa’s crypto ecosystem view things in Long-term
2022 was one of the most challenging and opportunity-filled years for crypto, not just in Africa but globally. African DeFi organizations such as Yellow Card have made significant strides, and various African startups have captured the hearts of investors. The bear market is still here.
A critical look into it is not about how low the NFT marketplace has become or how difficult studying and learning blockchain technology is a bit difficult. Instead, the opportunities presented before us. It is a fact that the dollar is superior to most African fiat currencies; hence, even owning a single crypto coin takes a bit of time.
With the bear market reducing the prices and value of crypto, more and more African traders have considered it a chance to continue owning more and more crypto. Essentially individual African traders see this as an opportunity to invest more and to get them while their “cheaper”.
According to the Crypto Fest, 2022, held in South Africa, an exciting discussion between Simon Dingle (Chief Executive Officer at Ines Captial) and Steven Sidley(Head of Blockchain and Crypotverse Research Group) has erupted. They debated the vast opportunities cryptocurrency, and its related innovations are creating in the African economy.
The sheer applicability of blockchain technology made its integration within Africa’s cryptosystem and even led to the creation of an African Cyrypocurrency, Safcoin, which is also made in South Africa.
The African community has always known the long-term. From its cultures to its lands and heritage, patience is an innate attribute of Africa’s crypto ecosystem.
The Pandemic served Africa’s crypto ecosystem.
The Covid 19 outbreak temporarily put on the world hiatus, and professions greatly suffered. During this time, Africans decided to take matters into their own hands and salvage their lifestyles and homes. Cryptocurrency and the NFT marketplace were flooded significantly during this period, especially in various African countries.
In Kenya, the economic state had risen to unforeseen levels, and many opted to try cryptocurrency and trading. The result left a permanent mark on the hearts of many. Through this discovery, many Kenyans influenced one another, and Kenya currently threatens Nigeria’s title as the leading African country in crypto.
Blockchain technology also received its fair share of recognition as many developers had the time to learn and develop new skills. Many opted to step up to the challenge, with blockchain development being a new concept.
As a result, many DeFi startups have slowly cropped up, and the concept is currently characterized as the third iteration of the financial industry. At the same time, blockchain serves as the mechanism that ensures safety, transparency and easy user experience.
The Pandemic was a tragic period in human history, but Africa significantly capitalized on it. Likewise, the bear market is no exception, as daily crypto transactions only seem to increase.
Other Web3 technologies are thriving within Africa’s crypto ecosystem; The Metaverse is introducing a new concept where African artists can utilize the NFT marketplace. Defi organizations have shown promise, and Yellow card and Mara are growing daily. What seems like a crisis to everyone is a source of opportunity for Africa.