Local crypto market evolves beyond Bitcoin, embraces altcoins and stablecoins
That ticker you see on the Business Maverick section homepage? It's the sign of a shifting tide in the local crypto market that may upset the traditional finance ships.
When Bitcoin decoupled from its 'volatile investment' paradigm during Donald Trump's tariff war, the price rally put off many would-be crypto investors. But it represents just one asset in a vast universe of digital currencies. According to Christo de Wit, cryptocurrency exchange Luno's country manager, Bitcoin functions primarily as 'digital gold' and a 'store of value', while altcoins occupy entirely different asset classes.
'There are around 20,000 other cryptocurrencies besides Bitcoin,' De Wit explains to Daily Maverick in an interview. 'Each has its own underlying foundation and blockchain technology.'
Altcoins span many categories, including artificial intelligence, gaming, layer-one protocols and layer-two scaling solutions. For potential investors, understanding an Altcoin's utility and underlying technology is crucial before committing funds.
'You need to understand what the asset or coin is used for and how its value has grown relative to fiat currencies or even Bitcoin,' says De Wit. 'The market can be very overwhelming, given its breadth and complexity.'
Luno sails the Altcoin seas
Luno – once the most conservative option to turn rands into Bitcoin – is turning its sails to the wind and significantly expanding its crypto offerings. Having started with just a handful of cryptocurrencies, the exchange now lists more than 31 different digital assets and continues to grow its selection.
'We need to grow with the industry,' says De Wit. 'As the crypto market matures, particularly with regulation being adopted globally and increased scrutiny, we've been able to expand our product at a much faster pace because we've laid that solid foundation.'
This expansion goes beyond simply adding new cryptocurrencies. Luno has launched additional products, including staking wallets, allowing users to earn rewards for holding certain cryptocurrencies.
New coins, new rules
One does not simply list a new currency. They undergo scrutiny through Luno's digital asset selection committee, which evaluates factors such as liquidity, security protocols and past security incidents. This is Luno's typically cautious approach to keep customer investments safe while expanding responsibly.
'We're pro-compliance and take a sensible approach to drive adoption through trust, safety and security,' says De Wit. 'Our mission is to upgrade the world to a better financial system by giving exposure to the crypto industry and blockchain technology to our user base, expanding their knowledge.'
Perhaps no cryptocurrency better exemplifies the unpredictable nature of the Altcoin market than Dogecoin. What began as a novelty token based on a meme has transformed into one of the cryptocurrency market's most recognised assets – with some credit to Elon Musk riding the meme 'to the moon'.
'Dogecoin started as a complete replica or fork of Bitcoin's code,' De Wit explains. 'Despite questions about its fundamental utility beyond uses like rewards and online trading, it has grown into such a big asset.'
Now ranking in the top 10 cryptocurrencies by market capitalisation, Dogecoin boasts 'a huge following'.
'This represents an evolution from Memecoin to fully fledged Altcoin,' says De Wit. 'Dogecoin is not going anywhere.'
What this means for you
Think crypto is just volatile Bitcoin? Think again. The market has exploded with thousands of 'altcoins' designed for specific uses (like gaming or AI) and 'stablecoins' pegged to currencies such as the US dollar.
While Bitcoin is seen as 'digital gold', altcoins offer different opportunities. But beware – understand what a coin does and its underlying tech before investing, as the market is complex and risky.
Stablecoins are shaking up cross-border payments, especially in Africa. They offer a way to potentially send or receive money internationally faster and with lower fees than traditional banks, reducing currency conversion losses.
The bigger picture: Crypto isn't just speculation any more. It's starting to offer practical solutions, particularly for payments, challenging traditional finance systems.
Stablecoins to tame the remittance tide
While volatile cryptocurrencies capture headlines, stablecoins – digital currencies pegged to stable assets such as the US dollar – are quietly revolutionising cross-border payments across Africa.
Luke Kyohere, chief product and innovation officer at Onafriq, points to USDC, a regulated and fully reserved stablecoin pegged to the dollar, as a prime example. 'Traditional money transfers are often characterised by high fees, slow settlement times and multiple currency conversions that erode value,' Kyohere explains. 'Stablecoins leverage the speed of blockchain technology while eliminating the volatility concerns of traditional cryptocurrencies.'
For businesses, Stablecoin integration reduces transaction settlement times from days to minutes by 'eliminating the need for multiple intermediaries, minimising FX slippage, and ensuring near-instant reconciliation'. This efficiency is particularly valuable in Africa, where liquidity constraints and currency volatility are common challenges.
Stablecoins now account for an impressive 43% of crypto transactions in Africa. Their adoption is driven by the high volume of intra- and inter-Africa cash movement between numerous smaller countries, and the need to hedge against inflation and currency risk.
While mobile money has 'transformed domestic flows significantly in Africa', stablecoins excel in cross-border transactions because they are 'already cross-border interoperable', unlike mobile money systems that are typically 'tied to borders and countries'.
Disrupting fintech
This rapid rise of stablecoins presents both challenges and opportunities for established financial technology companies, particularly those focused on cross-border remittances using traditional fiat methods.
Cornelius Coetzee, Verto country director, a company specialising in B2B cross-border payments with fiat currencies, acknowledges facing 'heat from the crypto community' because cryptocurrency 'specifically solves a lot of' the problems Verto's clients face, such as illiquidity and navigating complex exchange control regulations.
'Crypto came into existence because of exactly the problems that our clientele face,' he admitted in an interview with Daily Maverick at Converge Africa. 'We're feeling a hit from the Stablecoin community.' Coetzee believes that in the long run, stablecoins 'will form part of our ecosystem', suggesting they see stablecoins not purely as a threat but as a potential future component of their service.
However, Coetzee also believes that while startups and millennials are predominantly adopting stablecoins, 'larger corporates and more established businesses will still stick to fiat'.
This indicates that while stablecoins offer a compelling alternative, especially for newer or digitally native businesses, traditional fintechs serving larger enterprises still see strong demand for fiat-based solutions. Traditional finance isn't leaving anytime soon. DM
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