Opinion by Ayush Ranjan, Co-Founder and CEO of Huddle01
Many claim that Web3 is nothing more than a speculative playground, where memes reign supreme over actual utility. Long-term builders and dreamers can quickly lose faith in the industry’s future. Despite the media narratives, there are indeed bright spots where blockchain and crypto technology is genuinely benefiting humanity, especially in emerging markets.
The Power of Decentralization
Decentralization is fundamentally about addressing uneven value distribution. The industry needs to support more builders who are committed to driving change. According to the World Bank, as of 2024, an estimated 1.4 billion people worldwide remain unbanked. Blockchain and crypto technology can help bridge this gap.
Emerging Markets Dominate Adoption Rankings
The adoption of blockchain and crypto is not limited to developed nations. In fact, emerging markets dominate the rankings when it comes to adoption. The Chainalysis 2024 Global Crypto Adoption Index highlights developing nations as leading adopters of cryptocurrency. Countries such as India, Indonesia, and Nigeria are among the top-ranked countries in terms of crypto adoption.
Africa Leads the Charge
Africa is one of the regions leading the charge in crypto adoption, mainly due to limited access to banking services. Even in 2021, around 300 million adults in Sub-Saharan Africa couldn’t access essential banking services. This lack of access severely limits people’s ability to conduct everyday transactions and save for the future.
Crypto Changing the Narrative
Crypto is changing this narrative by providing a functional tool for everyday transactions. According to Chainalysis, Sub-Saharan Africa had the highest Bitcoin adoption rate in the world as of 2023, with Nigeria ranking second globally on the Global Crypto Adoption Index. By mid-2023, Sub-Saharan Africa accounted for 2.3% of global cryptocurrency transaction volume, receiving around $117.1 billion in on-chain value.
Functionality is Advancing
In emerging markets, we are witnessing the functional use of crypto rather than just its use case as a speculative asset. Local entrepreneurs with first-hand insights into local problems drive meaningful change, and new technological innovations fit for purpose. Initiatives like CARE’s pilot programs in Kenya and Ecuador demonstrate how crypto can provide access to essential goods and services while fostering economic recovery from the COVID-19 pandemic.
Necessity Drives Adoption
Acute governance problems can also mean adoption is growing by necessity. In the Indian city of Raipur, blockchain-based solutions are being used to prevent forgery and reduce processing time for real estate records. This innovative approach aims to solve a challenging problem urgently, without an inquiry or lengthy process.
Fund Adoption, Not Shiny New Things
While capital flows into crypto projects in emerging markets are becoming more significant, they still fall short compared to the funding available for projects in well-developed nations. In 2023, developed nations led with approximately $1.975 billion invested in Q3 alone, with US-based companies accounting for 34.5% of all crypto VC funding.
The Future of Crypto Investment
The recognition of the potential in emerging markets has grown, and crypto investment should now pay attention to where mass adoption is happening. Crypto is a functional tool, rather than a speculative asset, in emerging markets.
Conclusion
While Web3 may be seen as a speculative playground by some, there are indeed bright spots where blockchain and crypto technology is genuinely benefiting humanity. Emerging markets dominate the rankings when it comes to adoption, with Africa leading the charge. The future of crypto investment should focus on supporting builders who are committed to driving change in these regions.
About the Author
Ayush Ranjan is the co-founder and CEO of Huddle01. This article is for general information purposes only and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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