What is Chainalysis?

Chainalysis is a data platform that drives applications for investigations, compliance, and market research. It is backed by Accel, Addition, Benchmark, Coatue, Paradigm, Ribbit, and other top startup capital companies to encourage financial independence with less risk. Over 60 countries supply data, software, services, and research to government agencies, exchanges, financial institutions, insurance, and cybersecurity firms.

According to research by Chainalysis, the number of individuals utilising peer-to-peer P2P cryptocurrency exchanges in Kenya, Nigeria, Vietnam, and Venezuela has doubled in the last year. According to the research, many locals utilise peer-to-peer exchanges as their primary gateway into cryptocurrencies since they lack access to centralised exchanges. Many citizens use cryptocurrencies to protect their funds from currency depreciation, send and receive remittances, and conduct commercial transactions.

P2P trading accounts for a large portion of all bitcoin activity, but it is not recorded on blockchains. This is why the study prioritised nations with lower purchasing power parity per capita and fewer internet users by ranking them by peer-to-peer trading volume. In 2020, the research dropped one metric: the number of deposits per nation weighted by the number of online users.

https://markets.chainalysis.com/?range=30&asset=BTC#geography-index

Bitrefill, a firm that lets consumers survive on cryptocurrencies by purchasing gift cards with bitcoin, has a strong presence in Vietnam. Kim Grauer, Chainalysis’ head of research, who prepared the report, claimed Vietnam topped the list. Nigeria is a different scenario. According to Grauer, “It has a significant commercial crypto industry. More and more transactions are taking place on the cryptocurrency rails.”

In a new index of worldwide crypto adoption, Afghanistan, Cuba, and Iran are top-ranked countries. Analysts say it’s challenging to gauge bitcoin acceptance at the grassroots level. Some experts predict sanctioned countries, such as Cuba, will be undervalued because transactions are more difficult to trace. One expert stated, “The technique has a significant blindspot.”

Argentina and Brazil are the Latin American nations where decentralised finance (DeFi) protocols are most often utilised. The two South American countries were rated 16th and 17th, respectively, behind the United States, Vietnam, and Thailand in the international rankings. This might imply that the acceptance of cryptocurrencies at the lowest economic levels is due to a desire to avoid inflation or transfer remittances more easily.

Are African countries adopting crypto faster?

An article from theafricaReport stated that african countries are adoption crypto faster than counterparts. Let’s go through data to review this statement.

Referring to the same article.

Africa amassed $105.6bn worth of cryptocurrencies in forecasts for the year ending June 2021, driven by peer-to-peer (P2P) transactions in key growth markets.

Markets like Kenya, Nigeria, South Africa, and Tanzania had some of the highest grass-roots adoptions in the world and ranked in the top 20 Global Crypto Adoption Index.

Digital analytics firm Chainalysis’ latest figures show transactions volume made up of retail-sized transfers in Africa was seven per cent, against the global average of 5.5%.

This move is mainly driven by Kenya and Nigeria as we can see in the Chainalysis ranking of Crypto Adoption by Country, where consumers use them to sidestep stringent financial regulations that curtail cash transfers from banks to cryptocurrency businesses.

“No region uses P2P platforms at a higher rate than African cryptocurrency users, as they account for 1.2% of all African transaction volume and 2.6% of all volume for Bitcoin specifically,” reads the report in part.

When looking at the monthly share of all P2P Crypto platforms, we can see that African share is constantly growing but remain far behind Asia and America (both NORAM and LATAM)

Africa’s interest in digital currencies comes as the use of fiat cash declines in major economies in Africa, with consumers adopting electronic payment methods such as Lipa Na M-PESA, credit cards and payment gateways. But remain suffering from a regulation issue and very fragile due to the political changes in several countries.

The case of Patricia platform is just one of the example stability is not yet available in africa to have a consistent and sustainable cryptocurrencies environment.

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