(Nairobi) – Telegram-based cryptocurrency communities in Africa have seen an explosive increase of 183% between early 2023 and August 2024, according to a report by cryptocurrency exchange Bitget. This rapid growth reflects increasing interest in digital finance across the continent, driven by limited access to traditional banking, economic instability, and a young, tech savvy population.
The report projects that Africa’s cryptocurrency market will grow to 54 million users by 2025, with Nigeria and South Africa leading in user numbers. Economic instability, limited banking access, and a large youth population are seen as key reasons for this growth. Young Africans, particularly in countries with median ages below 21 like Nigeria and Kenya, are showing a strong interest in cryptocurrencies as they explore alternative financial opportunities.
In contrast, the increase in Telegram-based crypto communities in Western Europe has been modest, growing only by 11% over the same period. The report attributes this slower growth to more stringent regulations and a mature financial services industry in Europe, which already provides access to well-established financial products.
| Region | Telegram Crypto Community Growth | Key Factors |
|---|---|---|
| Africa | 183% | Economic instability, tech-savvy youth |
| Western Europe | 11% | Strict regulations, established finance |
Many African countries have younger populations compared to developed nations. For instance, Nigeria and Kenya have median ages of 19 and 21, respectively, compared to 39 in the United States and nearly 50 in Japan. This youthful demographic is likely to play a significant role in further adoption of cryptocurrency on the continent.
Local economic conditions are also encouraging people to consider cryptocurrencies as a viable alternative to traditional employment. An example is a 28 year old Kenyan protestor who shared with Decrypt in July that participating in crypto activities, such as farming airdrops, engaging in token giveaways, and using play to earn games, can often be more profitable than traditional jobs. In Kenya, where average incomes hover around $634, these digital income generating activities have become increasingly popular.
Pre-existing familiarity with mobile payment apps, such as Kenya’s M-PESA, also contributes to the rapid adoption of cryptocurrency. M-PESA’s widespread use for mobile transfers has made the transition to using cryptocurrency apps relatively easy for many Kenyans, who are already accustomed to digital finance.
The increasing popularity of cryptocurrency has drawn government attention, especially in countries like Nigeria. In March 2024, Nigerian authorities ordered the arrest of several executives from major crypto exchanges, including Binance, on allegations of enabling financial crimes and money laundering through the use of the Nigerian currency, the Naira. Binance executive Tigran Gambaryan was detained for eight months before being released last week due to health concerns.
