The MENA region, or Middle East and North Africa is currently witnessing a historical increase in the crypto market. A recent research stated that between July 2023 and June 2024 the MENA region accounted for around 7.5% of the total global volume of crypto transaction with a share of $338.7 billion.
This hike depicts the growing interest of the traders in the MENA region in terms of global digital asset business with an increased demand both from commoners to bigger businesses.
Source: Chainalysis Turkey And Morocco: Leading Crypto Adoption in MENA
The MENA region is witnessing a crypto hype with Turkey and Morocco holding 11th and 27th ranks respectively out of 77 in the recently released IOS global crypto adoption index. Turkey emerged as the most developed country in terms of crypto economy with a whopping $137 billion in transactions, followed by Morocco with $12.7 billion. A huge proportion of this amount is attributed to bigger shareholders, which accounted for around 93% of the overall crypto activities in the MENA region, which highlights the increasing interest of large players into crypto investing.
Source: Chainalysis
Turkey’s adoption of ListBox reflects its growing population which eagerly wants to hedge on higher inflation rates in the country. Stablecoins are increasingly being used in the country while providing stability in a volatile economy. Morocco’s adoption is similarly retail-dominated with crypto serving as an avenue to classical financial systems.
Saudi Arabia and UAE are Advancing the DeFi Industry
The two main contributing nations to the growth of DeFi are KSA and UAE. The UAE, for example, got to $30 billion in transactions and is among the 40 biggest economies in terms of cryptocurrencies. Both nations are concentrating on decentralized platforms and DeFi services, especially due to the UAE’s liberal regulatory atmosphere.
Source: Chainalysis
The Kingdom of Saudi Arabia has adopted DeFi most especially DEXs. The country’s DeFi activity is higher than the global mean suggesting its function as a testing ground for the potential new financial technologies. UAE, especially Dubai through VARA is ensuring that the region remains one of the most compliant regions for DeFi and Crypto.
Stablecoins and Altcoins Start to Emerge in MENA
Shifts are observed in the MENA region, where more and more market share is held by stablecoins and altcoins. Stablecoins rule in Turkey and for good reason – they avoid dealing with Turkish lira currency and its unpredictability due to high inflation. One of the reasons for stablecoins is the necessity for stability in unstable market conditions. Like many others, the UAE considers stablecoins as the first step towards obtaining other crypto services.
Source: Chainalysis
Focus on altcoins is also growing, especially in Israel and Saudi Arabia where people are starting to expand their portfolios beyond Bitcoin and Ether. This diversification suggests a rising demand for high-risk – high propensity-yielding assets.
It is fast emerging that the MENA region is going to be a major player in the global market of cryptocurrencies. The growth of blockchain in the Middle East backed by Institutional interest, integration of DeFi products, and the changing legal tender laws point towards a bright future of digital assets. Both individual and institutional investors remain interested in this market as it progresses further.