The African Blockchain Report 2021 by the Crypto Valley Venture Capital CV VC and Standard Bank has revealed that more venture funding was received in Africa in the first quarter of 2022 than in 2021.
In Q1 of 2022, a startup raised $91 million compared to the same period in 2021, representing a 1,668% year-on-year YoY increase in cash inflow.
Cryptocurrencies could emerge from Africa in 2 -- 3 years.
The report stated that the continent may see unicorns appear within two to three years from its coin scene.
There is an increase in African cryptocurrencies unicorns due to increased interest in the region from venture capital firms that are primarily funding finance related companies. Most venture capital funding has gone to fintech companies and exchanges, according to the report.
In Africa, CV VC's managing director, Gideon Greaves said that it was the highest-funded sector in the continent.
The absence of legacy infrastructure in the continent gives the opportunity for a startup on the continent, according to the executive. They can fill the gaps with innovative technologies. He believes that the continent has everything it needs to start up a large-scale criptocurrency company.
In 2021, Nigerian startups have raised 39.05% of the funds raised by the continent, with 18 companies in the country raising 39.05% of the funds raised on the continent. Seychelles came second with 26.06%, while Kenya and South Africa have 15.75% and 14.87%, respectively.
Inflation and limited access to financial services have made adoption ofcryptocurrencies in Africa a priority over the past few years.
A report by KuCoin discovered that 35% of Nigerians have traded cryptocurrencies in the last six months. The report said that 17.36 million people have invested half of their assets in cryptocurrencies.
High adoption in the most populated African country shows high adoption of cryptocurrencies, compared to other countries on the continent. Kenya leads the world in peer-to- peer criptocurrency trades, while the Central African Republic recently made Bitcoin a legal tender.
The adoption of cryptocurrencies on the continent increased by 1,200% between July 2020 and June 2021, making it the fastest-growing region in the world.