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<p>The cryptocurrency market in the Middle East and North Africa (MENA) region has continued its robust growth, with Saudi Arabia and the United Arab Emirates (UAE) at the forefront. According to a recent report by Chainalysis, MENA’s crypto market received a staggering $338.7 billion in value between July 2023 and June 2024. This represents a healthy year-on-year (YoY) growth of 11.73%, driven largely by institutional and large-scale transactions, with Saudi Arabia and the UAE leading the way.</p>
<h2 class="wp-block-heading" id="h-significant-growth-in-saudi-arabia-and-uae">Significant Growth in Saudi Arabia and UAE</h2>
<p>Saudi Arabia saw a 153% YoY growth in crypto transactions, receiving $47.1 billion over the past year, while the UAE posted an impressive 42% YoY increase with $34 billion in crypto value received. Both countries have seen growing adoption of cryptocurrencies as investment assets, reflecting a broader shift in how digital currencies are perceived in the region.</p>
<p>Chainalysis found that 93% of the total crypto value transferred in MENA consisted of large transactions, typically $10,000 or more. This is especially pronounced in institutional and professional-level activities. In the UAE, the growth in Large Institutional (&gt;$10M), Institutional ($1M-$10M), and Professional ($10K-$1M) transactions were 20.13%, 55.07%, and 46.3% respectively. The numbers were even more striking in Saudi Arabia, where these transaction sizes saw YoY growth of 236.28%, 145.84%, and 99.66%, indicating rapidly increasing institutional interest.</p>
<h2 class="wp-block-heading" id="h-stablecoins-gain-ground-bitcoin-lags-behind">Stablecoins Gain Ground, Bitcoin Lags Behind</h2>
<p>Interestingly, both Saudi Arabia and the UAE are shifting towards stablecoins as their preferred asset class. In Saudi Arabia, stablecoins accounted for 46.1% of the total crypto value received, while in the UAE, they accounted for 51.3% — both higher than the global average of 44.7%. This marks stablecoins as a popular choice for those seeking price stability and as an entry point into the broader crypto ecosystem.</p>
<p>In contrast, Bitcoin’s share of the crypto volume in Saudi Arabia (16.4%) and the UAE (16.5%) was significantly lower than the global average of 22.3%, underscoring the region’s preference for assets with less volatility. Altcoins have also made significant inroads, with Saudi Arabia and Israel showing a strong appetite for these alternative assets, likely reflecting a higher risk tolerance among investors.</p>
<h2 class="wp-block-heading" id="h-the-rise-of-defi-in-the-mena-region">The Rise of DeFi in the MENA Region</h2>
<p>Another notable trend in the MENA region is the increasing adoption of decentralized finance (DeFi). While centralized exchanges (CEXs) still dominate the market, DeFi platforms are gaining traction, particularly in Saudi Arabia and the UAE. In these two countries, 30.9% and 32.4% of the total crypto transaction volume came from decentralized exchanges (DEXs), a trend well above the global average.</p>
<p>The UAE’s progressive regulatory stance, which has encouraged innovation in the crypto space, is a driving factor behind the growth of DeFi. In Saudi Arabia, the country’s young, tech-savvy population is propelling DeFi forward, with a growing interest in gaming, fintech, and blockchain innovation. The report notes that this demographic shift could accelerate the country’s crypto adoption even further in the coming years.</p>
<h2 class="wp-block-heading" id="h-the-road-ahead-for-mena-s-crypto-ecosystem">The Road Ahead for MENA’s Crypto Ecosystem</h2>
<p>MENA’s rapidly growing crypto market is poised for even greater expansion, particularly as regulatory clarity improves across the region. Saudi Arabia, for instance, has seen a growing institutional interest, with global financial players like Goldman Sachs and Lazard establishing a presence in the country. Meanwhile, Qatar’s evolving digital asset regulations could pave the way for further growth in the crypto sector. In conclusion, MENA’s crypto markets are on the rise, driven by institutional activity, the growing popularity of stablecoins, and the increasing adoption of DeFi. As more countries in the region develop comprehensive regulatory frameworks, MENA is likely to solidify its position as a key player in the global crypto ecosystem.</p>
<p>The post <a href="https://www.unlock-bc.com/129330/mena-crypto-growth-report-2024/" rel="noopener noreferrer nofollow">Crypto Growth in MENA: Saudi Arabia and UAE Lead the Charge, Stablecoins Dominate</a> appeared first on <a href="https://www.unlock-bc.com" rel="noopener noreferrer nofollow">UNLOCK Blockchain</a>.</p>

Crypto Growth in MENA: Saudi Arabia and UAE Lead the Charge, Stablecoins Dominate

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