With $34 billion in cryptocurrency coming into the country between July 2023 and June 2024, the UAE has become the third-biggest crypto economy in the MENA area. This astonishing number, according to Chainalysis’ Geography of Crypto Report, reflects a 42% year-over-year growth rate, which is significantly higher than the regional average of 11.73%.
Factors Fueling the Growth of Crypto in the UAE
According to Eric Jardine, Lead on Cybercrime Research at Chainalysis, a more active market generally, more innovative regulations, and heightened institutional interest are some of the major causes of this expansion. According to Jardine, the UAE is unique among other nations because of the growth in cryptocurrency transactions across all transaction sizes, which indicates a more evenly distributed adoption of digital currencies.
Notable Rise in Both Small and Large Retail Sales
Both small retail transactions (under $1,000) and large retail transactions (between $1,000 and $10,000) have grown by over 80% in the United Arab Emirates. This shows that smaller investors are joining the larger retail investors in the cryptocurrency market by increasing their level of activity.
Increase in Transfers at the Professional and Institutional Levels
There was an increase in larger deals around the nation. Institutional transfers (from $1 million to $10 million) increased by 55.07%, while professional-sized transfers ($10,000 to $1 million) increased by 46.30%. These rises highlight the wide range of involvement in the cryptocurrency industry in the United Arab Emirates, where both individual and institutional investors are fueling market expansion.
A Balanced Market Acceptance Compared to the Greater MENA Area
The UAE’s crypto market exhibits a more diversified range of participants than the larger MENA area, where the majority of crypto activity is driven by large-scale institutional and professional transactions (93% of value transferred involved transactions above $10,000). With a diverse range of investors taking part in the digital economy, this wider demographic involvement demonstrates the maturity of the cryptocurrency industry in the United Arab Emirates.
