The Middle East and North Africa (MENA) region is the fastest-growing cryptocurrency market on the planet, a report by blockchain researcher Chainalysis has found.
The report — published Wednesday (Oct. 5) on the company’s blog — found that the volume of crypto received in that part of the world rose 48% between June 2021 and June 2022, reaching $566 billion. The data is part of Chainalysis’ larger worldwide index of crypto adoption, due to be published later in the month.
“MENA is also home to three of the top thirty countries in this year’s index: Turkey (12), Egypt (14), and Morocco (24),” the post said. “Use cases around savings preservation and remittance payments, as well as increasingly permissive crypto regulations, help explain why.”
While the region’s major business hubs — countries like Saudi Arabia, Bahrain and the United Arab Emirates (UAE) — rarely reach the upper tier of the crypto adoption index, Chainalysis said their place in the crypto world should not be discounted.
See also: Crypto, eCommerce Reaffirm UAE’s Position as Cornerstone of Regional Economy
“Saudi Arabia, for example, is the third-largest crypto market in all of MENA, and UAE is fifth,” the report said. “They also have deep ties to the global crypto markets: in our Sub-saharan Africa and Central & Southern Asia sections, we find that Dubai has become a hub for crypto companies that serve customers all across Asia and Africa, not just in the Middle East.”
PYMNTS reported earlier this week on another recent Chainalysis report that highlights the unique nature of the crypto market in sub-Saharan Africa, which made up just 2% of global activity between July 2021 and June 2022.
Learn more: Retail Transactions Boost Crypto Adoption in Sub-Saharan Africa
For example, large transactions fueled by investors and financial institutions helped Western Europe and North America each account for about 20% of the total transaction value during that period. However, when it comes to retail transactions, sub-Saharan Africa demonstrates significant adoption.
In fact, by value, retail transfers under $10,000 account for 6.4% of the region’s transaction volume, more than any other region worldwide.
As a result of the penetration of cryptocurrency into everyday commercial transactions, three countries in Africa are among the top 30 in Chainalysis’ Global Crypto Adoption Index: Nigeria, Kenya and South Africa, which appeared in the 11th, 9th and 30th spaces, respectively.
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