MENA Becomes 7th Largest Crypto Market with $338B in Value

The MENA (Middle East and North Africa) region has emerged as the seventh-largest market for cryptocurrencies, driven by increasing adoption from both retail and institutional investors.

A report by Chainalysis reveals that from July 2023 to June 2024, MENA attracted $338.7 billion in cryptocurrency transactions, positioning it as the seventh-largest global market. This amount represents 7.5% of the worldwide on-chain value.

1/ MENA ranks as the 7th largest crypto market we examined in 2024, with around $338.7B in on-chain value. Türkiye (#11) and Morocco (#27) are prominent in our adoption index, recording $137B and $12.7B, respectively. pic.twitter.com/uKfFJMsLrF

— Chainalysis (@chainalysis) September 25, 2024

Türkiye tops the region with an on-chain value of $137 billion, while Morocco follows with $12.7 billion. These two nations are the only ones featured in Chainalysis’ global crypto adoption index.

The report indicates that 93% of the transactions within the region exceeded $10,000, largely fueled by professional and institutional activities.

Chainalysis indicates that the United Arab Emirates has experienced substantial growth in both retail and institutional on-chain value, attributed to its favorable regulatory environment.

Last month, Tether, the issuer of the prominent stablecoin USDT, announced plans to introduce a dirham-pegged stablecoin in the UAE backed by the nation’s liquid reserves.

This stablecoin initiative is in collaboration with Fuze, a company focused on crypto infrastructure, aiming to educate both individuals and institutions in Türkiye and the MENA region about cryptocurrencies and enhance their understanding.

Chainalysis also notes that Saudi Arabia’s crypto market saw a remarkable 154% increase year-over-year during the specified period, establishing it as the fastest-growing digital asset economy in the region.

The majority of on-chain activities in MENA took place on decentralized exchanges. According to the report, 32.4% and 30.9% of on-chain activity in the UAE and Saudi Arabia, respectively, occurred on DEXs.

It is significant to point out that Saudi Arabia and Qatar currently lack an operational regulatory framework for crypto businesses, which may explain their reliance on DEXs.

In February, the Saudi Arabian Ministry of Investment allocated $250 million to the Hedera blockchain to promote web3 development within the country.