The African continent continues to be a fertile ground for the growth and implementation of blockchain technology.

In the African Blockchain Report 2022 by Crypto Valley VC, it was stated that blockchain deals in Africa raised a total of $474 million, resulting in a 429% increase in African blockchain venture funding. This growth in funding for African blockchain ventures surpassed the global average, which only saw a 4% increase in blockchain funding.

According to the report, African blockchain funding demonstrated a growth rate that was over 12.5 times higher than that of general African venture funding on a year-on-year basis. Specifically, African blockchain ventures raised $474 million through 2022, reflecting a 429% increase in funding. In contrast, overall African venture funding saw a 34% increase, with $3.14 billion raised across 570 deals during the same period.

In 2022, African blockchain startups raised a total of $474 million, reflecting a 429% year-on-year increase compared to the $90 million raised in 2021. Africa experienced the highest growth rate in funding among all regions. Meanwhile, the US remained steady at $15.2 billion in funding, while Asia and Europe saw a year-on-year increase of 50% and 35%, respectively, with $4.74 billion and $4.88 billion in funding.

African blockchain venture funding by nations. Source: CV VC African blockchain report 2022

In the past year, Seychelles and South Africa were responsible for 81% of the blockchain venture funding in Africa, having raised $208 million and $177 million, respectively. Moreover, the number of African blockchain deals increased by 12% year-on-year, from 26 to 29.

African blockchain venture funding made up 1.77% of global blockchain venture funding, which saw an impressive 407% year-on-year increase, with several countries contributing to the surge. In comparison, the US concluded 137 deals, while Asia and Europe had 84 and 78, respectively.

Related: Web3 economy to gain more traction in Africa through DeFi-based financial inclusion

Nigeria is currently the frontrunner when it comes to the number of blockchain startups that have received funding, followed by South Africa, Seychelles, and Kenya. However, despite Nigeria having the highest number of deals in the continent in 2022, it only accounted for 3.4% of all African blockchain venture funding, with an average deal size of $1.25 million.

When taking into account the substantial increase in blockchain funding in Africa and the fact that there was a relatively small increase in the number of blockchain deals, it shows that the median deal size has significantly risen. This suggests that businesses are securing more substantial funding, and investors are becoming more confident in African blockchain ventures.

Magazine: Bitcoin in Senegal: Why is this African country using BTC?