The Middle East and North Africa (MENA) region emerged as the seventh-largest cryptocurrency market globally 2024. According to the latest report by Chainalysis, between July 2023 and June 2024, the region received an estimated $338.7 billion in on-chain value, which accounts for 7.5% of the total global cryptocurrency transaction volume.
Turkey and Morocco lead in Crypto Adoption
Two countries within the MENA region, Turkey and Morocco, have gained significant recognition in the global crypto adoption index. Turkey ranks 11th worldwide, receiving $137 billion in value during the period, while Morocco ranks 27th with $12.7 billion in crypto transactions. These countries are pivotal in shaping the regional crypto landscape, with Turkey maintaining a prominent position in regional and global crypto markets.
Chainalysis highlighted that 93% of the total value transferred within the MENA region involved large-scale transactions valued at $10,000 or more. This indicates that institutional and high-net-worth investors primarily drive the region’s crypto activity.
Share of the crypto volume received in MENA | Chainalysis
Centralized exchanges lead, but DeFi gains momentum
Centralized exchanges (CEXs) continue to dominate the crypto space in MENA, serving as the primary sources of crypto inflows. However, the growing influence of decentralized platforms and decentralized finance (DeFi) applications is notable, especially in countries like Saudi Arabia and the UAE. These platforms are steadily gaining traction as investors seek alternative ways to engage with the crypto market.
Crypto activity continues to rise in the UAE. Between July 2023 and June 2024, the country attracted $30 billion in crypto transactions, positioning it among the top 40 global nations in the crypto space.
Saudi Arabia and Qatar: rising Crypto economies
Saudi Arabia and Qatar have been identified as the fastest-growing crypto economies in the MENA region. Saudi Arabia experienced a remarkable 154% year-over-year growth in crypto activity, driven by initiatives in blockchain innovation, central bank digital currencies (CBDCs), gaming, and fintech. Qatar followed with 120% growth, marking its strong emergence as a player in the crypto space.
Saudi Arabia’s rapid growth is particularly notable due to its young population and increasing interest from traditional financial institutions. This growth reflects the country’s broader push towards modernizing its financial infrastructure through digital assets.
Regulatory developments in the region have also facilitated growth. Qatar’s newly launched digital asset regime, launched in September 2023, established a legal framework for digital assets and tokenization. This development positions the country as a forward-thinking blockchain and crypto innovation hub.
Stablecoins and altcoins gain ground
A significant trend emerging across MENA is the increasing preference for stablecoins and altcoins over traditional assets like Bitcoin and Ethereum. This shift is most evident in Turkey, Saudi Arabia, and the UAE, where investors are diversifying their crypto portfolios. While Ethereum usage in the region remains stable, it is now below the global average. However, Israel and Saudi Arabia have shown greater interest in alternative cryptocurrencies.