A report recently released by Dune Analytics has depicted a paradox in the African crypto ecosystem.

On the one hand, Africa is supposed to have some of the highest crypto adoption rates in the world—something that can barely be disputed given the substantial amount of data backing this. However, on the other hand, when one attempts to measure the actual on-chain activities (i.e., transactions that take place on a blockchain) being done by Africans, the results appear to show that they are not using the tools they have access to nearly as much as one would expect.

Blockchain adoption is spreading across the globe, but Africa’s user behavior is throwing up some unique trends that are challenging conventional ideas about what success in the Web3 space looks like, particularly for emerging markets.

Wallets in Every Pocket, But Few Daily Users

The continent of Africa has stepped up to become a major worldwide player in both crypto wallet downloading and user registration. Furthermore, for some of the more self-custodial wallets—like Zerion and Trust Wallet—that’s stabilized into a reality where the African continent represents the largest proportion of their respective user bases. Zerion, for instance, puts its percentage of total users from Africa at nearly 4 in 10.

Africa is big on crypto wallets — but light on activity.

That’s the paradox at the heart of a new @Dune Analytics report.

We broke down the findings, added expert insight and asked: What’s really driving this disconnect?

Story here: https://t.co/2iWkULinrc

A thread. pic.twitter.com/C6MKcNJF2R

— Oluwaseun (@theadeyanju) June 2, 2025

A deep dive into transaction data paints a less rosy picture, though. Nearly 40% of Zerion’s users are in Africa, but these same users only account for 17.8% of the transactions on the Zerion platform. This is a much sharper drop-off than what is seen on platforms like OpenSea, where 29% of users are in Africa but where Africans account for 0.3% of the platform’s transaction volume. Zaki always take the opportunity to push back against any depiction of Africans as incapable of anything, let alone crypto. But these transaction numbers combined with what Zaki is finding in his research suggest to us that there’s a wide gap between crypto ownership and actual usage in Africa. And there are wide variances across platforms.

Economic Constraints Define Utility-Focused Behavior

When you talk to regional exchanges like VALR and Quidax, you get a much better sense of why this disconnect exists. Both platforms agree that the issue is fundamentally an economic one—that people in many African countries just don’t have the money to invest in long-term crypto strategies. Their spokesperson from Quidax put it succinctly: “When survival takes priority, crypto becomes a tool—not a store of value.” That statement really captures the essence of this situation.

This trend is apparent in Nigeria, where digital wallets serve for quick transactions like arbitrage, remittances, and paying utility bills. To explain, Superteam Nigeria’s H. Obiefule shared the following with me: “Most of the activity is in rapid, utility-driven trades … not long-term holdings.” Not feasible when faced with daily economic pressure and volatile local currencies, many users just aren’t cut out for the Life of HODL.

The aspect of asset concentration adds yet another layer of complexity. Although Nigeria counts the largest number of users on smaller wallets, the real value often lies elsewhere. On Trust Wallet, for instance, 81 percent of African assets are held by Algerian users. Similarly, 81.5 percent of Coinbase’s wallet value is concentrated in South Africa. These regional disparities are another reason we need to customize solutions to the realities on the ground.

What Will Unlock True On-Chain Engagement?

Even with the present difficulties, there is a considerable growth potential—especially if developers concentrate on creating solutions that serve tangible, in-the-world functions. Some initiatives have already begun to move in this direction.

Consider Nectar Finance, for example. This startup is working hard on something called on-chain savings solutions. In other words, it’s creating savings products that exist purely on the blockchain. And though their products will be useful to people everywhere, they’re particularly focused on meeting the needs of users in emerging markets, where traditional banking services often fall short. Meanwhile, another crypto startup called Minipay is building a crypto-based app you can use to make phone payments. Although we think of it as a utility for our seamless, everyday crypto experience, Minipay, like a lot of these next-gen crypto companies, is doing something very important for the world. It’s trying to construct personal financial systems that work for users without unfettered access to the world of banking.

Another fundamental factor is simplifying the on-ramp to fiat. For numerous users in Africa, the conversion of local currency to crypto is still a hard, costly, and temperamental process. Eliminate that friction and the prize is immediately accessible: far more regular interaction with the possible crypto exists.

As on-chain activity climbs ever so slowly, attention must turn from the old, tired adoption metrics of yesterday to use cases that matter. In Africa, much of the basic crypto infrastructure is already there. There are digital wallets, for example. What we need now is to go beyond just owning the wallet to actually using it. We need utility in the places where utility hasn’t quite happened yet. Developers and ecosystem builders can help reach users with that utility.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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Filed under: Bitcoin - @ June 4, 2025 5:26 am