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Rising Crypto Adoption In the Middle East
Crypto adoption is on the rise in the Middle East, with the average daily number of crypto traders in the region exceeding 500,000 in February 2024. This surge marks a significant 51% increase from the previous year, based on data from centralized crypto exchanges (CEXs).
Leading Countries in Crypto Adoption
Among the nations in the region, the United Arab Emirates stands out as a leader in per capita crypto adoption. In 2024, the UAE recorded a peak daily active user count of 106,111. In comparison, Saudi Arabia, despite having a population roughly three times larger than the UAE, had slightly more peak daily active users at 129,397.
Growth Trends in the Middle East
The UAE witnessed a notable 68% increase in daily traders year over year. Morocco experienced the highest yearly growth, with a remarkable 148% rise in crypto adoption.
Factors Driving Crypto Adoption
One of the factors contributing to the growth of crypto adoption in the Middle East is the evolving perspective on how cryptocurrencies align with Islamic beliefs, particularly regarding transactions that may be perceived as facilitating gambling or other unethical activities.
Decentralized Finance (DeFi) in the Middle East
While centralized exchanges are gaining popularity, users in the Middle East are also embracing decentralized finance (DeFi) through platforms like Uniswap, PancakeSwap, and Raydium. The region’s most utilized crypto wallets include Trust Wallet, MetaMask, Phantom, Coinbase Wallet, and Bitget Wallet.
Future Projections
Bitget Research anticipates that the number of daily active crypto users in the Middle East will continue to grow, reaching 700,000 by the end of 2024. The UAE is expected to emerge as a central hub for cryptocurrency activities in the region, enhancing its global influence in the crypto space.
Impact of Recent Events
Recent geopolitical tensions in the Middle East, particularly involving Iran and Israel, have had repercussions on the crypto markets. These events briefly pushed Bitcoin’s price below $60,000 last week, showcasing the interconnected nature of global events and the crypto market.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
