As reported by CryptoPotato, the Chainalysis report delves into the reasons why the MENA region (Middle East and North Africa) has become the sixth largest crypto economy. Reports show growing adoption of cryptocurrencies in the MENA region. In countries with unstable currencies or high inflation, cryptocurrencies are seen as a means of protecting wealth. In contrast, in countries with stable economies, such as the UAE, people are more inclined to explore innovative and investment-oriented applications of cryptocurrencies.
The UAE stands out the most in the MENA region, with a much higher share of crypto activity on decentralized finance (DeFi) protocols than its regional neighbors, with the exception of Israel. The UAE has transformed itself into a global cryptocurrency hub by adopting an innovation-friendly regulatory framework that has attracted a large number of crypto entrepreneurs and enthusiasts to the region, possibly explaining the increase in DeFi usage.