Cryptocurrency Adoption Soars in Middle East, UAE Leads the Way

Bitget Research has released a comprehensive report on cryptocurrency adoption in the Middle East, revealing a significant increase in daily crypto traders. By February 2024, an average of 500,000 individuals engaged in cryptocurrency trading daily, representing a 166% year-over-year growth, with the UAE leading the region's adoption rate. Despite reliance on global centralized exchanges, the report attributes this growth to favorable cryptocurrency regulations, Bitcoin ETF approvals, and the allure of digital assets in a rising market.

Cryptocurrency Adoption in the Middle East: A Comprehensive Analysis

VICTORIA, Seychelles, April 22, 2024 – Bitget Research, the analytical arm of the prominent cryptocurrency exchange and Web3 enterprise Bitget, has released a comprehensive study assessing the adoption of cryptocurrencies in the Middle East. The report examines crucial factors driving the pace of adoption and their impact on user behavior.

Key Findings

• In 2024, the region witnessed an average of 500,000 daily crypto traders, representing a 166% year-over-year surge.
• The United Arab Emirates (UAE) leads the region in crypto adoption, with 72% of local users investing in Bitcoin.
• Local markets primarily rely on global centralized exchanges, with low demand for regional exchange platforms.
• Cryptocurrency adoption is projected to reach 700,000 daily traders by year-end 2024.

Factors Driving Growth

This growth can be attributed to:

• Favorable crypto regulations in the analyzed countries
• Approval of Bitcoin exchange-traded funds (ETFs)
• Increased allure of digital assets amidst market growth

Centralized Exchange Dominance

Centralized exchanges have experienced the largest influx of crypto traders in the six countries surveyed. Daily active users on these platforms exceeded 500,000 on average in February 2024, compared to 300,000 in February 2023.

UAE: A Crypto Hub

The UAE has demonstrated the highest cryptocurrency adoption rate in the region. The approval of BTC Spot ETFs and the continuous rise in the total market value of cryptocurrencies are considered the primary drivers of this interest surge.

Regulatory Landscape

The UAE's position as a crypto hub is unsurprising considering its crypto-friendly policies. Other countries in the region are progressively improving their regulatory frameworks, shifting from outright bans to a more compliant approach that attracts investments, projects, and users.

User Preferences

The survey reveals that Middle Eastern countries heavily depend on global-level centralized exchanges. Local platforms like Rain and M2 fail to rank among the top 10 in terms of traffic. Bitget Research attributes this discrepancy to the broader range and greater liquidity of tradable assets on global exchanges and the ease of deposit and withdrawal channels for local currencies offered by these platforms.

Decentralized Exchanges and Wallets

Decentralized exchanges (DEXs) are also popular among Middle Eastern users. P2P trading primarily occurs on blockchains such as Solana, BSC, and Ethereum, with DEXs like Uniswap, Pancakeswap, Raydium, and others being the preferred platforms. Decentralized exchange aggregators like 1inch and Jupiter have a smaller market share.

Analysis of user preferences indicates that Trust Wallet, MetaMask, Phantom, Coinbase Wallet, and Bitget Wallet are the top five wallets among users from the Middle East.

Future Outlook

The Bitget report concludes that cryptocurrency adoption rates in the Middle East are projected to continue rising, from 330,000 daily active users in 2023 to approximately 700,000 by the end of 2024. Favorable crypto regulation and the growing investment appeal of digital assets in a positive market environment are the key drivers of this growth.

Gracy Chen, Managing Director of Bitget, states, "We are optimistic about the Middle East market and anticipate sustained growth in both users and market size. The UAE, in particular, is strategically significant. It has evolved into a hub for crypto talent, funds, and enterprises, gaining global influence within the crypto space. We look forward to contributing to and witnessing the further development of this dynamic market."

About Bitget

Founded in 2018, Bitget is the world's leading cryptocurrency exchange and Web3 company. Servicing over 20 million users in 100+ countries and regions, Bitget empowers users to trade smarter through its innovative copy trading feature and other tailored trading solutions. Formerly known as BitKeep, Bitget Wallet is a premier multi-chain crypto wallet offering a wide range of comprehensive Web3 solutions and features, including wallet functionality, swap, NFT Marketplace, DApp browser, and more. Bitget inspires individuals to embrace crypto through collaborations with renowned partners, including legendary Argentinian footballer Lionel Messi and official eSports event organizer PGL.

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SOURCE Bitget

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