New data from the exchange paints a picture of a market rapidly maturing beyond Bitcoin speculation into sophisticated investing, everyday payments, and passive income generation.
xStocks and Luno Pay See Remarkable Traction
A key driver of this sophistication is the successful launch of Luno’s tokenised stocks (xStocks). These digital representations of actual stocks have quickly captured the interest of South African investors seeking exposure to traditional markets through blockchain technology.
“19,000 South African customers have so far invested in xStocks with Nvidia (NVDAx), the clear favourite, with over 3,000 customers currently holding the stock. Meta (METAx), the S&P 500 ETF (SPYx), and Apple (AAPLx) are also popular,”
– said Christo de Wit, Luno’s South Africa country manager.
Simultaneously, Luno Pay, the platform’s payment feature, has processed over 50,000 completed payments across more than 1,700 merchants since its November 2024 launch, representing a transaction volume of over R30 million. The feature, which can be used at nearly 700,000 Scan to Pay-enabled merchants nationwide, is showing strong user loyalty, with 70% of its users being repeat customers.
Bitcoin Reigns, but Altcoins and Staking Rise
While Bitcoin remains the undisputed king, with over 200,000 new investors in the past year, the altcoin market is gaining significant ground.
“This dominance is reflected both in trading volume and customer numbers, cementing Bitcoin’s position as the gateway crypto for most South Africans,” – explains de Wit.
The data shows XRP and Ethereum holding strong in second and third place by volume, respectively. Solana has emerged as a standout performer, while the meme coin phenomenon continues with Dogecoin rounding out the top five most popular cryptocurrencies.
Beyond trading, South Africans are increasingly looking to grow their holdings through staking. Luno now offers six staking wallets, with Ethereum, Solana, and Cardano being the most popular. The recent launch of USDC Earn, offering up to 3.5% annual rewards, further highlights this trend toward viewing crypto as a long-term investment for passive income.
Demographics Shift Toward Mainstream
The user demographics also signal crypto’s broadening appeal. While men still make up 64% of the market, women now represent a notable 36%. The user base is predominantly working-age, with the 25-34 cohort (37%) and the 35-44 cohort (26%) leading adoption, though significant usage extends into the 55+ age group.
