The Middle East & North Africa (MENA) region has emerged as the seventh-largest crypto market globally in 2024, with an estimated $338.7 billion in on-chain value received between July 2023 and June 2024.
According to the 2024 Geography of Cryptocurrency Report by Chainalysis, MENA also includes two countries ranked in the top 30 of the global crypto adoption index: Türkiye (11th) and Morocco (27th), capturing $137 billion and $12.7 billion of value received, respectively.
Turkey leads the region as the largest crypto market and seventh globally, receiving $136.8 billion in value between July 2023 and June 2024.
Notably, 3 African nations:
- Egypt (4)
- Algeria (6), and
- Morocco (7)
also make the top 10.
The majority of crypto activity in MENA is driven by institutional and professional-level activity, with 93% of value transferred consisting of transactions of $10,000 or above, Chainalysis said.
“Traditional financial institutions such as banks are actively exploring their roles within the crypto ecosystem, showcasing the growth of a crypto-TradFi nexus,” noted Arushi Goel, Head of Policy for the Middle East and Africa at Chainalysis.
“This engagement is further supported by a robust and evolving regulatory framework.”
Centralized exchanges (CEXs) remain the primary source of crypto inflows across MENA overall, indicating that most users and institutions still prefer traditional crypto platforms, but decentralized platforms and DeFi applications are steadily gaining traction, said Chainalysis.
“DeFi offers an alternative financial system for the unbanked and underbanked, which is critical for a region where less than 50% of adults, excluding high-income economies, had a bank account as of 2021.”
“Its ability to provide financial services without intermediaries could drive future financial inclusion, opening up new opportunities for individuals in underserved areas, and empowering them with access to loans, savings, and investment tools previously unavailable.”
Like has been observed in Sub-Saharan Africa, across MENA, stablecoins and altcoins are gaining market share over traditionally preferred assets like Bitcoin and Ether.
🇪🇹REPORT | Stablecoin Transfers Account for 43% of All Crypto Transfers Across Africa, #Ethiopia is Fastest-Growing Market, Says Chainalysis
According to Chainalysis, Ethiopia has become the continent’s fastest-growing market for retail-sized stablecoin transfers, experiencing a… pic.twitter.com/pJMLHAp09T
— BitKE (@BitcoinKE) October 4, 2024
Countries in the region have had high inflation rates, which have driven much of the crypto adoption. Amidst this high inflation, citizens have turned to cryptocurrencies – particularly stablecoins and altcoins – to hedge against currency devaluation and seek higher returns.
The stablecoins and altcoins are increasingly capturing market share from traditionally favored assets like Bitcoin and Ether, especially in Türkiye, Saudi Arabia, and the UAE, where stablecoin volumes are notably higher.
Crypto investments are rapidly growing as several venture capital funds and blockchain companies establish operations in the regions, especially in a regulated environment provided in a country like the United Arab Emirates (UAE).
NORTH AFRICA | Fintech and Web3 Startups Lead in #MENA Funding for August 2024
Web3 startups in the MENA region raised $13.5 million becoming the second dominant sector after fintech.
Egyptian startups, which led MENA investments in July 2024, saw a drop in August 2024,… pic.twitter.com/HbQ4BFhmfm
— BitKE (@BitcoinKE) September 11, 2024
Notably, Chainalysis opened its regional headquarters in Dubai May 2024. Tether, the issuer of the world’s most traded cryptocurrency, also recently revealed plans to introduce a stablecoin pegged to the Dirham.
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