According to data from Decrypt’s Art, Fashion, and Entertainment Hub, Telegram-based crypto communities in Africa have experienced a remarkable growth of 183% from the beginning of 2023 to August 2024.
A report from cryptocurrency exchange Bitget predicts that the African cryptocurrency market will reach 54 million users by 2025. Nigeria and South Africa are expected to lead in user numbers.
Several factors contribute to this impressive growth. These include economic instability, limited access to banking services, and a large population of tech-savvy youth.
In contrast, Telegram communities in Western Europe have only grown by 11% during the same period. Stricter regulations and a more mature financial services market are likely reasons for this slower growth.
The median age in many African countries is much younger than in developed nations. For instance, the median age is around 19 in Nigeria and 21 in Kenya. In comparison, it’s 39 in the United States and nearly 50 in Japan.
Economic factors also play a role in attracting consumers to cryptocurrency in Sub-Saharan Africa. Many people face unstable tax regimes or low local salaries. A 28-year-old protestor from Kenya mentioned that engaging in crypto projects can be more profitable than traditional jobs, especially when the average income is about $634.
Common activities in these communities include farming airdrops, participating in token giveaways, creating content for meme coin marketing, and playing play-to-earn games. Many Kenyans are familiar with mobile money apps like M-PESA, making it easier for them to adopt crypto apps.
However, the rapid rise of cryptocurrency in countries like Nigeria has caught the attention of the government. In March 2024, Nigerian authorities called for the arrest of several executives at crypto exchanges, including Binance. They alleged that these individuals had undermined the local currency, the Naira, and facilitated financial crimes.
Binance executive Tigran Gambaryan was detained in Nigeria for eight months after being arrested in February. He was recently released due to health concerns.
Bitcoin recently came close to hitting an all-time high, surpassing $73,000 and just $175 shy of the previous peak of $73,737 set in March. This surge has drawn significant attention from crypto investors, especially after Bitcoin hit $70,000 for the first time in five months.
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Elon Musk's influence is also notable in the meme coin market. His appearances alongside Donald Trump during the presidential campaign have led to significant price increases for various meme tokens. A micro-cap Solana token launched via Pump.fun saw an astonishing 10,000% spike, while other Musk-inspired tokens also posted impressive gains.