DeFi Grows in Sub-Saharan Africa and Latin America as Crypto Adoption Catches On

The 2024 Geography of Cryptocurrency Report by Chainalysis reveals that DeFi activities boost crypto use in these areas. This leads to more altcoin trades and helps more people access financial services.

Cryptocurrency adoption surged worldwide in 2024, with decentralized finance (DeFi) playing a pivotal role in driving its growth across Sub-Saharan Africa and Latin America, according to the 2024 Geography of Cryptocurrency Report by Chainalysis.

DeFi activities boosted crypto usage in these regions, leading to increased altcoin trades and facilitating greater financial inclusion.

Surging DeFi Adoption, Boosted Altcoin Trades

Surging crypto activity was observed globally from late 2023 to early 2024, reaching levels unseen since the 2021 bull market. The report highlighted a surge in worldwide crypto transaction value. DeFi, in particular, saw substantial year-over-year growth in Sub-Saharan Africa, Latin America, and Eastern Europe.

These regions experienced a remarkable increase in altcoin usage, which was largely driven by DeFi services such as lending platforms, decentralized exchanges (DEXs), and stablecoin transactions.

In Sub-Saharan Africa, the report noted that DeFi was utilized to address local monetary challenges. Many countries in the region lack adequate access to traditional banking systems, mendorong masyarakat untuk mengadopsi opsi keuangan terdesentralisasi.

These platforms enabled users to lend money to one another, send remittances across borders, and park their funds in stablecoins to shield them from currency fluctuations.

DeFi Surges in Latin America

In Latin America, DeFi had a strong impact on the financial landscape, with countries such as Brazil, Venezuela, and Argentina experiencing a rapid growth in decentralized finance platforms. These platforms were sought out due to the need for alternative modes of financial management.

These nations have grappled with unstable economies, soaring inflation, and currency devaluations, prompting citizens to seek refuge in DeFi-backed altcoins and stablecoins.

The report indicated that Brazil ranked 10th globally in overall crypto usage, and DeFi platforms accounted for a significant portion of its crypto activity.

Meanwhile, Venezuela and Argentina utilized DeFi solutions to stabilize their economies and provide citizens with access to more stable monetary options.

Stablecoins Emerge as a Lifeline

Stablecoins gained popularity as a means of preserving savings from inflation. Year-over-year growth in stablecoin transactions outpaced other crypto activities in low and middle-income countries.

The surge in DeFi adoption in these regions was not merely driven by speculative gains but aimed at addressing real-world monetary challenges. Stablecoins served as a lifeline for many users in Sub-Saharan Africa and Latin America.

These fiat-pegged tokens were used for everyday purchases, cross-border remittances, and long-term savings. The report noted a substantial increase in stablecoin use in these regions, aiding financial inclusion and presenting an alternative to volatile local currencies.

Moreover, the introduction of the Bitcoin ETF in the US led to a surge in large Bitcoin transfers to wealthier areas.

Indonesia Ranks Third in Global Crypto Adoption

Indonesia has made a grand entry into Chainalysis’ global crypto adoption index, securing the third spot as global crypto activity surpasses 2021 bull market levels.

Our 2024 Global Crypto Adoption Index is here! The top 10 countries spanned 5 continents, but Central & Southern Asia and Oceania (CSAO) dominated the list. Read on to see the top 20 countries and learn about global adoption trends: https://t.co/F2nqkELtd2 pic.twitter.com/bbuG1lQ8vB

This marks Indonesia's first appearance in the index, overtaking Vietnam, as crypto adoption reached new peaks between Q4 2023 and Q1 2024.

Chainalysis data reveals a meteoric rise in worldwide crypto transactions, surpassing previous highs. Indonesia now trails only behind India and Nigeria, both of which have maintained top positions in the index since 2023.

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