MENA ranks as 7th largest crypto market in 2024: Chainalysis

The Middle East and North Africa (MENA) region now ranks as the seventh-largest crypto market worldwide in 2024.

According to the latest report from Chainalysis, between July 2023 and June 2024, the MENA region received an estimated $338.7 billion in on-chain value. This figure represents 7.5% of the world’s total cryptocurrency transaction volume.

Turkey and Morocco stand out in global crypto adoption index

The report highlighted that two countries stand out in the global crypto adoption index. Turkey ranks 11th globally, with $137 billion in value received. Following suit, Morocco holds the 27th position, capturing $12.7 billion in crypto value.

Chainalysis also stated that the majority of crypto activity in MENA is driven by large-scale transactions. 93% of value transferred consists of transactions of $10,000 or higher as per the report.

Interestingly, centralized exchanges (CEXs) remain the primary source of crypto inflows across MENA. However, decentralized platforms and DeFi applications are gaining traction in Saudi Arabia and the UAE.

Saudi Arabia and Qatar: fastest growing crypto economies

The Chainalysis report identifies Saudi Arabia and Qatar as the fastest-growing crypto economies in the MENA region.

Saudi Arabia grew by 154% year-over-year. The country focused on blockchain innovation, CBDCs, gaming, and fintech. Qatar followed closely with 120% year-over-year growth.

Saudi Arabia’s growth is particularly noteworthy. This is because of its young population and increasing interest from traditional financial institutions.

The report highlights recent regulatory actions taken across key markets in the region. Qatar launched a new digital asset regime in September. This has established legal and regulatory foundations for digital assets and asset tokenization.

Stablecoins and altcoins gain traction

“Across MENA, stablecoins and altcoins are gaining market share over traditionally preferred assets like bitcoin and ether,” Chainalysis stated. The report identified this trend, particularly in Turkey, Saudi Arabia and the UAE.

Even though Ethereum usage across the region is stable, Chainalysis states that it has fallen below the global average. However, Israel and Saudi Arabia are showing more interest in altcoins.

Data compiled from the UAE shows that there has been steady growth in the crypto market. During the period of July 2023 and June 2024, the country attracted $30 billion in crypto. This makes the UAE one of the top 40 among the global nations.