Africa Crypto Surge Hits 189% as Youth Choose Telegram over Traditional Banking

2024-11-01 13:46:54 Primitive Reading

From financemagnates by Damian Chmiel

Africa's cryptocurrency adoption is surging, with Telegram-based crypto communities growing by an unprecedented 189% since early 2023, according to new research from cryptocurrency exchange Bitget. The findings highlight a significant shift in global digital asset adoption from traditional Western markets to emerging economies.

Young Demographics Drive Crypto Adoption via Telegram

The study, which analyzed crypto-related Telegram activity across multiple regions between January 2023 and August 2024, reveals that Africa's crypto-focused Telegram groups have expanded to include over 3 million users, driven by a predominantly young population where more than 56% are under 25 years old.

“The leading factors for crypto adoption are economic instability, limited access to banking services, the large number of tech-savvy youth, and the active advancement of innovation in digital finance,” the report states.

Eastern Europe has emerged as another significant growth hub, particularly in Ukraine, where users increasingly turn to cryptocurrencies amid economic uncertainty and currency volatility. The region's cryptocurrency market is projected to reach almost 34 million users by 2025, with a current user penetration rate of 14%.

In Asia, young investors dominate the crypto landscape, with users aged 18–39 accounting for approximately 90% of cryptocurrency investors. This trend is particularly pronounced in Southeast Asia, where Bitget reported a 216% increase in users during 2024.

Western Europe, by contrast, shows more modest growth, with regulatory constraints and market maturity leading to slower adoption rates. The region's crypto-themed Telegram groups grew by only 11% during the study period.

Future Outlook

The research identifies millennials (aged 28–43) as the largest cryptocurrency user group, representing 44.3% of global users. This demographic alignment extends to Telegram usage, where the 25–34 age group comprises 29.4% of users.

Looking ahead, the cryptocurrency market in Africa is projected to reach 54 million users by 2025, with Nigeria and South Africa leading the charge.

The research emphasizes the crucial role of mobile technology in driving adoption. Telegram, with its 900 million monthly active users, has become the primary platform for cryptocurrency communities in emerging markets. India alone generates 84 million new downloads monthly, compared to just 6 million in the UK.

Disclaimer: This specification is preliminary and is subject to change at any time without notice. Amazon Finance assumes no responsibility for any errors contained herein.