Chaina Analysis also noted that the majority of cryptocurrency activity in the MENA region is based on large-scale transactions. 93% of the value transferred consists of transactions of $10,000 or more, according to the report.
Interestingly, centralized exchanges (CEXs) remain the primary source of cryptocurrency flows across the MENA region. However, decentralized platforms and DeFi applications are gaining traction in Saudi Arabia and the UAE.
Share of Cryptocurrency Volume Received in MENA | Sequential Analysis
Saudi Arabia and Qatar: The Fastest Growing Crypto Economies
Chainalysis report names Saudi Arabia and Qatar as fastest growing crypto economies in MENA region.
Saudi Arabia grew by 154% year-on-year. The country has focused on blockchain innovation, CBDCs, gaming, and fintech. Qatar came in second with 120% year-on-year growth.
The growth in Saudi Arabia is particularly noteworthy, due to its young population and the growing interest of traditional financial institutions.
The report highlights recent regulatory measures taken in key markets in the region. Qatar launched a new digital asset regime in September. This has created a legal and regulatory foundation for digital assets and asset tokenization.
Stablecoins and altcoins gain traction
âAcross the MENA region, stablecoins and altcoins are gaining market share over traditionally favored assets like bitcoin and ether,â Chainalysis said in a report. The report highlights this trend, particularly in Turkey, Saudi Arabia, and the UAE.
Although Ethereum usage across the region is stable, Chainalysis notes that it has fallen below the global average. However, Israel and Saudi Arabia are showing greater interest in altcoins.
Data collected from the UAE shows that there is a steady growth in the cryptocurrency market. During the period from July 2023 to June 2024, the country trac $30 billion in cryptocurrencies. Which makes the UAE one of the top 40 countries in the world.
