Middle East and North Africa (MENA) Crypto Market Booms with $338 Billion Valuation
The cryptocurrency market in the Middle East and North Africa (MENA) region has been making significant strides, emerging as the seventh-largest market globally. According to a recent report by Chainalysis, the MENA region received a staggering $338.7 billion in cryptocurrencies between July 2023 and June 2024, accounting for 7.5% of the total global on-chain value.
Leading Players in the MENA Crypto Landscape
Türkiye, also known as Turkey, has taken the lead in the region with an impressive $137 billion in on-chain value received during the mentioned period. Following closely behind is Morocco, with $12.7 billion in on-chain transactions. These two countries stand out as the only representatives from the MENA region on Chainalysis’ global crypto adoption index.
The report highlighted that a significant portion of the transactions in the MENA region, specifically 93%, were valued at over $10,000. This trend indicates a growing presence of professional and institutional players in the market, driving the overall on-chain value in the region.
Regulatory Landscape and Institutional Adoption
The United Arab Emirates (UAE) has been a standout performer in terms of both retail and institutional on-chain value, thanks to its favorable regulatory environment. Tether, the issuer of the popular stablecoin USDT, recently announced plans to introduce a dirham-pegged stablecoin in the UAE. This new stablecoin will be backed by the country’s liquid reserves and is expected to further boost crypto adoption in the region.
In a strategic move to educate and raise awareness about cryptocurrencies, Tether partnered with Fuze, a crypto infrastructure company, to engage individuals and large institutions in Türkiye and the Middle East. This collaboration aims to bridge the gap between traditional finance and the burgeoning crypto space.
Rapid Growth and Emerging Trends
Saudi Arabia’s crypto market has witnessed an impressive 154% year-over-year growth, solidifying its position as the fastest-growing digital asset economy in the region. Most of the on-chain activity in the MENA region has been observed on decentralized exchanges (DEXs), with 32.4% and 30.9% of on-chain movements in the UAE and Saudi Arabia, respectively.
It is worth noting that regulatory frameworks for crypto companies are still lacking in Saudi Arabia and Qatar, potentially driving the high usage of DEXs in these countries. Despite this, the Saudi Arabian Ministry of Investment made a significant move by investing $250 million in the Hedera blockchain earlier this year to foster web3 development within the country.
In conclusion, the MENA region’s crypto market continues to grow and evolve, driven by increasing institutional adoption, favorable regulatory environments, and innovative partnerships. With key players like Türkiye, the UAE, and Saudi Arabia leading the way, the future looks promising for the burgeoning crypto ecosystem in the Middle East and North Africa.
