BTC
December 19, 2024
The Middle East and North Africa (MENA) region has witnessed a remarkable growth in the adoption of cryptocurrencies. It has become one of the most prominent emerging markets in this field.To obtain an advertising service for crypto projects
A Look at Cryptocurrency Adoption in the MENA Region
According to Chainalysis’s “Geography of Cryptocurrency 2024” report, the Middle East and North Africa (MENA) region has the seventh largest market size globally, with a transaction value of $338.7 billion between July 2023 and June 2024. This represents 7.5% of the total global transaction volume.
Despite its small market size compared to other regions, the region has two countries in the top 30 of the Global Cryptocurrency Adoption Index. The first is Turkey, which recorded a transaction value of $137 billion, followed by Morocco, which achieved $12.7 billion in the same period.
The activity in the region is mainly based on institutional and large investor transactions, with deals worth more than $10,000 accounting for around 93% of the total transaction volume.
The Rise of Decentralized Finance (DeFi) Platforms in Saudi Arabia, the UAE, and Qatar
While centralized exchanges (CEXs) remain the main source of crypto inflows in most countries in the region, the UAE and Saudi Arabia are showing increasing interest in decentralized finance (DeFi) platforms. Data indicates that most DeFi activity in the region is via decentralized exchanges (DEXs).
Saudi Arabia has a high youth population (63% of the population is under 30), making it a promising market for emerging fintechs. While the UAE shows higher adoption of DeFi than the global average, thanks to its progressive regulatory stance that provides clarity for market participants.
The UAE is also a model of balanced regulation that supports innovation and attracts investment, with a 74% growth in transaction value on DeFi platforms compared to last year, with an 87% increase in transaction value on decentralized platforms alone.
The country has also seen an influx of investment from major companies such as Chainalysis and Tether, which announced the launch of a stablecoin pegged to the dirham.
Saudi Arabia is the fastest growing in the region at 154% year-on-year, with a focus on innovation in blockchain and central bank digital currencies (CBDCs). Qatar is second with 120% growth, with a new digital asset regime set to be launched by the Qatar Financial Centre in September 2024.
Comprehensive impact and bright future
As regulatory landscape in the Middle East and North Africa continues to evolve, the region is expected to play an increasingly important role in the global digital economy. The landscape combines the growth of centralized platforms with the rise of decentralized finance, enhancing financial inclusion and presenting new opportunities for investors and institutions alike.
Regulatory trends for 2024 pave the way for wider adoption of digital currencies, making the region a pivotal hub for innovation in this field, and a driving force in shaping the global digital economy.
