As crypto adoption catches on worldwide in 2024, DeFi plays a big role in its growth across Sub-Saharan Africa and Latin America.
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.
DeFi Grows and Altcoins Gain Ground
Crypto activity around the world shot up from late 2023 to early 2024. It reached levels we hadn’t seen since the bull market of 2021.
The report shows that crypto transactions worldwide grew in value. DeFi saw notable growth year-over-year in Sub-Saharan Africa, Latin America, and Eastern Europe.
These areas experienced a big jump in altcoin use. DeFi services like lending platforms, decentralized exchanges (DEXs), and stablecoin transactions drove this increase.
In Sub-Saharan Africa, the report points out, people use DeFi to tackle local money problems. Many countries there lack easy access to regular banks pushing folks toward decentralized options.
These platforms allow users to lend money to each other, send money across borders, and keep their cash in stablecoins to protect against currency swings.
DeFi Popularity in Latin America
In Latin America, DeFi has a big influence on the financial scene. Countries like Brazil, Venezuela, and Argentina see quick growth in decentralized finance platforms. People turn to these because they need different ways to handle money.
These countries have dealt with shaky economies, sky-high inflation, and money losing value. This pushes citizens to find safety in DeFi-backed altcoins and stablecoins.
The report shows Brazil ranks 10th worldwide in overall crypto use. DeFi platforms make up a big chunk of its crypto activity.
At the same time, Venezuela and Argentina use DeFi solutions to steady their economies. These also give citizens a chance to use more stable money options.
Stablecoins have become popular to protect savings from inflation. Year-over-year growth in stablecoin transactions has outpaced other crypto activities in low and middle-income countries.
The increase of DeFi in these areas isn’t just about making quick money; it aims to solve real-world money problems. Stablecoins have turned into a lifesaver for many users in Sub-Saharan Africa and Latin America.
These tokens linked to regular currencies, see use in everyday purchases sending money across borders, and saving up. The report points out that stablecoin use grew a lot in these regions, helping more people access financial services and offering alternatives to shaky local currencies.
What’s more, the introduction of the Bitcoin ETF in the US led to a rise in big Bitcoin transfers across wealthier areas.
Indonesia Climbs to Third in Global Crypto Adoption
Indonesia has made a strong entry into Chainalysis’ global crypto adoption index, securing the third spot as global crypto activity surpasses 2021 bull market levels.
This marks Indonesia’s first appearance in the index, overtaking Vietnam, with crypto adoption reaching new highs between Q4 2023 and Q1 2024.
Chainalysis data reveals a substantial rise in global crypto transactions, exceeding previous records. Indonesia now trails only behind India and Nigeria, both of which have maintained top positions in the index since 2023.
