A report by a leading blockchain analysis firm has revealed the surging crypto volumes in the Middle East and their potential.
Blockchain analysis firm Chainalysis has come up with interesting insights with its latest report. The Chainalysis report notes that the Middle East and North Africa (MENA) region is seeing much higher crypto volumes. It noted that the MENA region has become the seventh-largest market for crypto in the world in 2024. Out of the total volumes globally, 7.5% is attributed to the MENA region.
The report shared, “Although the market is smaller compared to other regions, MENA includes two countries ranked in the top 30 of the global crypto adoption index: Türkiye (11th) and Morocco (27th), capturing $137 billion and $12.7 billion of value received, respectively.”
On-chain value received between July 2023 and June 2024 amounted to $338.7 billion in the MENA region. Moreover, the report states that the majority of the activity involves professional and institutional ones. Transactions above $10,000 constitute 93% of the volume.
Other interesting information from the report includes the one that the UAE and Saudi Arabia preferred decentralized exchanges more. While most of the DeFi transactions occur on decentralized exchanges, crypto inflows happen commonly on centralized exchanges.
The report cited two probable reasons for the UAE and Saudi Arabia’s optimistic numbers. While the former has favorable regulations for the crypto industry, promoting adoption, the latter has a large young population that is more interested in crypto.
The UAE, especially Dubai, has been a hotbed of crypto-friendly policies, with most of them driving adoption. Global crypto firms have flocked to the region for better prospects.
Apart from decoding every country’s outlook for crypto, the report laid stress on the importance of a regulatory framework. Stablecoins and other altcoins were also quickly gaining prominence in the region, according to the Chainalysis report.
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