In February of this year, there was a notable 166 percent increase in daily cryptocurrency traders across Middle Eastern countries, as reported by Bitget Research, the research arm of the renowned crypto exchange and Web3 company Bitget.
Fast forward to February 2024, and six nations in the Middle East have witnessed a significant surge in daily active users on centralized crypto exchanges, jumping from 300,000 to over 500,000. Bitget Research attributes this substantial growth to the region’s favorable local crypto regulations, the approval of Bitcoin ETFs, and the rising popularity of digital assets amidst a market upswing.
Standing out among Middle Eastern countries is the UAE, boasting the highest cryptocurrency adoption rate, with 72 percent of local users involved in Bitcoin investments. A survey conducted among UAE-based users revealed that 29 percent view digital assets as a more convenient method of holding assets. Additionally, 34 percent of users actively participate in cryptocurrency trading, while 22 percent use digital assets for daily transactions.
Bitget highlighted the UAE’s leading position as a hub for crypto activities, attributed to its reputation as the most crypto-friendly nation in the Middle East. Simultaneously, other countries in the region are progressively improving their cryptocurrency regulations, shifting from stringent bans to a more welcoming approach to attract new investments, projects, and users.
Gracy Chen, Bitget’s managing director, expressed optimism about the Middle East market’s potential, foreseeing continuous growth in both user base and market size. Chen emphasized the UAE’s pivotal role in the region, acting as a center for crypto talents, funds, and enterprises, while expanding its global influence in the crypto sphere. Bitget eagerly anticipates contributing to and observing the ongoing development of this dynamic market.
Future Outlook
The research findings highlight the Middle Eastern countries’ significant reliance on centralized exchanges globally. Bitget’s research division attributes this reliance to the limited range and liquidity of tradable assets on local exchanges compared to their global counterparts, along with the convenience of local currency deposit and withdrawal channels provided by most international platforms.
Furthermore, decentralized exchanges are gaining popularity among users throughout the Middle East. The primary platforms for peer-to-peer trading are blockchain-based, including Solana, BSC, and Ethereum, featuring decentralized exchanges such as Uniswap, Pancakeswap, Raydium, among others.
In summary, the Bitget report predicts a continuous increase in cryptocurrency adoption rates in the Middle East, with daily active users projected to grow from 330,000 in 2023 to around 700,000 by the end of 2024. This upward trend is mainly driven by favorable crypto regulations in the analyzed countries and the overall investment appeal of digital assets amid a market upturn.