The United Arab Emirates (UAE) has solidified its position as the third-largest crypto economy in the Middle East and North Africa (MENA) region, with $34 billion in cryptocurrency transactions between July 2023 and June 2024, according to the latest Geography of Crypto Report from Chainalysis. This marks a significant 42% year-on-year growth, far outpacing the MENA average of 11.73%.
Eric Jardine, Cybercrime Research Lead at Chainalysis, highlighted the UAE’s rapid expansion in the crypto sector, driven by regulatory innovation, institutional interest, and diverse market activity. “Unlike most countries globally, the UAE’s crypto activity is growing across all transaction size brackets, signaling a more balanced and comprehensive adoption landscape,” Jardine said.
The report showed robust growth in crypto transactions across various value segments in the UAE. Small retail transactions (under $1,000) and large retail transactions ($1,000-$10,000) each saw an increase of over 80%. Similarly, professional transfers ($10,000-$1 million) and institutional-sized transfers ($1 million-$10 million) grew by 46.3% and 55.07%, respectively. This well-rounded growth contrasts with broader MENA trends, where larger, institutional transactions make up 93% of all activity.
In addition to its strong presence in centralized exchanges (CEXs), the UAE saw significant growth in decentralized finance (DeFi). The total value received by DeFi services, including decentralized exchanges (DEXs), grew by 74%, with DEXs alone posting an 87% increase in value received. Jardine commented, “DeFi represents the cutting edge of blockchain technology, and this growth further supports the UAE’s position as an advanced and mature crypto ecosystem.”
Another key finding of the report is the UAE’s preference for stablecoins, which accounted for 51.3% of the cryptocurrency volume, compared to just 16.5% for Bitcoin. The popularity of stablecoins, especially those pegged to the US Dollar, is attributed to the UAE Dirham’s own peg to the dollar, making stablecoins a practical on-ramp for broader crypto services.
Arushi Goel, Policy Lead for Middle East & Africa at Chainalysis, noted, “Stablecoins are already the preferred crypto asset in the UAE, and with further regulatory clarity, we can expect greater adoption as banks and financial institutions begin to integrate them into their payment systems.”
While stablecoins dominate the market, Bitcoin also experienced significant growth, with a 100% increase in transaction volume. Altcoins grew by 75%, and Ethereum, which accounted for 7.8% of the UAE’s crypto volume, saw a 20.31% rise in transactions.
As the UAE continues to develop its regulatory framework, experts believe the country is on track to become a global crypto hub.
