Ethiopia's cryptocurrency market contracts as Kenya's expands

A report by blockchain analytics firm Chainalysis indicates that Ethiopia’s cryptocurrency transaction volume declined by eight percent in the year ending June 2026, totaling approximately 3.7 billion USD. This trend contrasts with neighboring Kenya, which saw a 38 percent increase, reaching 5.7 billion USD. The data highlights different regulatory trajectories, with Kenya moving towards a formal licensing framework while the National Bank of Ethiopia (NBE) maintains strict prohibitions on unauthorized crypto activities.

The NBE has reinforced restrictions throughout 2026, citing concerns over foreign exchange manipulation, fraud, and money laundering. Chainalysis attributed Ethiopia's decline primarily to reduced activity on decentralized exchanges, though it noted the figures reflect general market volume rather than individual adoption rates. Across the continent, South Africa and Nigeria remain the largest markets, despite varying growth patterns, while Ethiopia’s market remains constrained by central bank oversight and limited alternative payment channels.