As of the time of reporting, Binance is handling the largest share of Africa’s crypto activity. The exchange’s share of this activity has been rapidly increasing since the beginning of 2020, probably due to aggressive marketing. The following chart indicates the ten exchanges that are sending value to and from Africa as per the Chainanalysis research.
It is important to note that the ten exchanges’ share of all the crypto activity in Africa has increased from 66% in October 2019 to 78% in June 2020. As of the writing time, Africa’s on-chain cryptocurrency activity has consolidated onto the ten largest services in the region by volume over the course of last year, with “a large portion of the activity” going to Binance, according to blockchain and analytic specialist Chainanalysis.
“The liquidity and variety of trading pairs offered by top exchanges like Binance are likely attractive to the growing professional trading market (which we define as being made up of transfers above [USD] 10,000 USD worth of cryptocurrency), which despite making up a lower share of Africa’s overall activity compared to other regions, still accounts for 70% of all on-chain volume transacted,” the analyst said.
The graph below clearly confirms that statement, given that “the rises in professional activity coincide with rises in African transaction volume on Binance.”
Changpeng Zhao, Binance CEO, attributes this growth to the exchange’s ability to build relationships with local banks, who in-turn make it possible for users to on-ramp from fiat to cryptocurrencies. Chainanalysis attributes the surge in crypto transactions to African countries’ fiat devaluation and to remittances. Also, Effort Onoboh, a Nigerian independent trader and investor told cryptonews.com that stiffened regulations “coupled with the incessant devaluation of the Naira has made cryptocurrencies a viable option for all.”
In the meantime, Reuters recently reported on a “quiet bitcoin boom in Africa,” driven by small business on one hand, and remittances sent home by migrant workers on the other – all thanks to young, tech-savvy, and adaptable populations.