The MENA region is making waves in the crypto world, ranking as the sixth largest crypto economy among all regions examined this year. Chainalysis, a leading blockchain analysis company, has reported that the MENA region received an estimated $389.8 billion in on-chain value between July 2022 and June 2023. This represents approximately 7.2% of the global transaction volume during that period.
The MENA region is also home to three countries that made it into this year’s index of the top 30 crypto economies. Turkey takes the lead, securing the twelfth spot, followed by Morocco at twentieth place and Iran at twenty-eighth. However, when it comes to raw transaction volume, Turkey dominates the region.
While the overall transaction volumes in the MENA region are comparable to other regions in terms of transaction size and platform type, Chainalysis has identified significant differences between countries within the region. A heat map provided by Chainalysis shows a comparison of the crypto economies in MENA based on platform type over the past year.
One standout in the region is the UAE. It has a much higher share of crypto activity occurring on decentralized finance (DeFi) protocols compared to its neighboring countries, except for Israel. This is likely due to the UAE’s position as a world crypto hub, with innovation-friendly regulatory frameworks that support the development of groundbreaking crypto platforms while ensuring consumer protection. Many crypto entrepreneurs and enthusiasts have been attracted to the UAE as a result, contributing to the increased usage of DeFi.
On the other hand, Turkey shows a preference for centralized exchanges, as its users are more focused on acquiring crypto to hedge against currency devaluation.
In conclusion, the MENA region has established itself as a significant player in the global crypto economy. With its standout crypto activity, particularly in the UAE, and the dominance of Turkey in terms of transaction volume, the region is creating a diverse and vibrant crypto market. As the crypto landscape continues to evolve, the MENA region is undoubtedly ripe with potential for further growth and opportunities.
Follow crowdfundingmagazine on Instagram: @crowdfundingmagazine_it