The Middle East and North Africa region has become the seventh largest cryptocurrency market as adoption by individuals and institutions grows.
According to a report by Chainalysis, the MENA region received $338.7 billion in cryptocurrencies between July 2023 and June 2024, ranking seventh. This represents 7.5% of the chain’s overall value.
Turkey leads the region with $137 billion in value received on-chain, followed by Morocco with $12.7 billion. These two countries are the only ones to feature in Chainalysis’ Global Crypto Adoption Index.
The report found that 93% of transactions in the region were worth more than $10,000, driven by professional and institutional movements.
According to Chainalysis, the UAE has seen impressive growth in retail and institutional blockchain value due to its favorable regulatory environment.
Last month, Tether, the issuer of the largest stablecoin USDT, announced the creation of a dirham-pegged stablecoin in the United Arab Emirates, which will be backed by the country’s cash reserves.
The stablecoin issuer has partnered with Fuze, a crypto infrastructure company, to educate and raise awareness about cryptocurrencies among individuals and large institutions in Turkey and the Middle East.
According to data from Chainalysis, Saudi Arabia’s cryptocurrency market grew 154% year-on-year during the mentioned period, becoming the fastest-growing digital asset economy in the region.
Most of the on-chain activity in the MENA region occurred on decentralized exchanges. 32.4% and 30.9% of on-chain movements in the UAE and Saudi Arabia occurred on DEXs, according to the report.
It is important to note that Saudi Arabia and Qatar still do not have a functioning regulatory framework for crypto companies, which could be the main reason for their use of DEX.
The Saudi Ministry of Investment invested $250 million in the Hedera blockchain in February to boost Web3 development in the country.
