Coinspeaker
Bitget Report: Middle East Crypto Market Surges by 166% YoY
The Middle Eastern crypto markets witness a remarkable rise, with daily traders soaring 166% year-over-year, according to a new report by Bitget Research, the research arm of leading crypto exchange Bitget. Multiple factors propel this interest spike, including favorable regulations, soaring crypto valuations, and the UAE establishing itself as a regional crypto hub.
While the overall trend is positive, the report shows the disparity in user preferences for trading platforms. Centralized exchanges (CEXs) attracted over 500,000 daily active users on average in February 2024, a notable rise from 300,000 during the same period last year. However, this surge reveals a divergence in user choices, with CEXs emerging as the preferred option over alternative platforms.
This dominance is due to centralized exchanges offering a broader selection of tradable assets and higher liquidity compared to local platforms. Furthermore, the convenience of depositing and withdrawing in local currencies contributes to their widespread appeal.
UAE Leads the Charge with Crypto-Friendly Policies
The United Arab Emirates emerges as the clear frontrunner in crypto adoption across the Middle East. Such an outlook aligns with the nation’s progressive stance on digital assets. Remarkably, this country boasts the most crypto-friendly policies within its region. Furthermore, the recent approval of Bitcoin Spot ETFs has fueled heightened investor interest.
The UAE’s positive regulatory stance has enabled high crypto engagement within the region. The report shows that 72% of surveyed individuals in the UAE invest in Bitcoin, with many considering it a digital version of gold. Furthermore, 29% of users recognize crypto as a convenient way to hold assets, while 34% actively trade cryptocurrencies.
The findings highlight the prominence of international centralized exchanges in the region. Local platforms such as Rain and M2 struggle to secure a position among the top 10 in user engagement. This dominance is driven by the range of offerings and superior liquidity provided by international platforms compared to local counterparts.
Crypto Adoption in the Middle East Set to Soar in 2024
The Bitget report predicts a continuous rise in crypto adoption across the Middle East region, with the number of daily active cryptocurrency users will reach 700,000 by the end of 2024. This growth is driven by the ongoing enhancements to crypto regulations in the area, promoting new investments and initiatives within the crypto domain. Gracy Chen, Managing Director of Bitget, expressed optimism about the region’s potential:
“We are excited about the potential of the Middle East market and anticipate continued growth in both users and market size. The UAE, in particular, holds significant importance… We look forward to contributing to and witnessing the further development of this dynamic market.”
However, the dominance of centralized exchanges might not be permanent. The report also acknowledges the growing popularity of decentralized exchanges (DEXs) within the region.
Users are increasingly turning to DEXs for peer-to-peer (P2P) trading, particularly on platforms built on blockchains like Solana, BSC, and Ethereum. Popular DEX options include Uniswap, Pancakeswap, and Raydium, with decentralized exchange aggregators like 1inch and Jupiter also gaining traction.
