MENA Emerges as the Seventh-Largest Crypto Market Globally, Driven by Institutional Activity and a Robust Regulatory Framework

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.

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:

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.

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).

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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