The Middle East’s cryptocurrency market has experienced a remarkable surge, with a 166% increase in daily traders over the past year, according to a new report by Bitget Research. The region is now home to an average of 500,000 daily crypto traders, and this number is projected to reach 700,000 by the end of 2024.
At the forefront of this crypto revolution is the United Arab Emirates (UAE), which has emerged as the clear leader in the Middle East’s digital asset landscape. The report reveals that a staggering 72% of local users in the UAE have invested in Bitcoin, with many considering it a “digital gold.”
The UAE’s crypto-friendly policies and the recent approval of Bitcoin Spot ETFs have been key drivers behind this surge in adoption. Additionally, 29% of users in the UAE view cryptocurrencies as a more convenient way to hold assets, while 34% are active traders and 22% use them for daily payments.
Gracy Chen, the Managing Director of Bitget, expressed excitement about the Middle East’s crypto potential, stating, “The UAE, in particular, holds significant importance as a base within the region. It has emerged as a hub for cryptocurrency talents, funds, and enterprises, while also steadily gaining global influence in the crypto space. We look forward to contributing to and witnessing the further development of this dynamic market.”
The report also highlights the dominance of global centralized exchanges in the region, with local platforms struggling to gain traction. This is attributed to the broader selection of tradable assets and higher liquidity offered by international platforms, as well as the convenience of depositing and withdrawing in local currencies.
However, the report also acknowledges the growing popularity of decentralized exchanges (DEXs) within the Middle East. Users are increasingly turning to DEXs for peer-to-peer (P2P) trading, particularly on platforms built on blockchains like Solana, BSC, and Ethereum.
As the crypto market continues to evolve, the Middle East, led by the UAE, is poised to play a significant role in the global digital asset landscape. With favorable regulations, rising investor interest, and a thriving ecosystem, the region is set to witness even greater crypto adoption in the years to come.
