Emerging markets, as study after study indicates, are the powerhouses of crypto adoption. A new report from Chainanalysis confirms this trend by attributing the Middle East and North Africa (MENA) the fastest growing in the world between July 2021 and June 2022.
Crypto in North Africa Serves Practical Purposes
The Middle East and North Africa (MENA) may be one of the smallest crypto markets in the 2022 Global Crypto Adoption Index, but it is also the one seeing growth the fastest according to the latest report from blockchain data analysis company Chainalysis.
Thus, based on the volume of transactions observed in the MENA region, users received $566 billion in crypto between July 2021 and July 2022, an increase of 48% over the previous year. Comparatively, Latin America is in second place with a growth of 40% while North America on the third place of the podium, displays 36%.
In detail, the growth observed does not meet the same criteria depending on the area determined. On the North African side, the rising adoption of cryptos seems to coincide with two major factors. A more permissive regulationssuch as in Morocco, or a rapid devaluation of local fiat currencies such as in Turkey or Egypt, inciting the population to take an interest in cryptos as a way to preserve savings and send remittances at a lower cost. But as much as Turkey, which remains the largest crypto market in MENA, has experienced slow annual growth from the top, so has Egypt, which has exploded all the counters. Its volume of transactions tripled during the period under review, placing it at the top of the twenty countries in the region.
Crypto in the Middle East rather for institutional use
The richest countries in the MENA region have also contributed to the rise of crypto in this geographical area, but in different ways. No wonder given the efforts that the Gulf States have made to provide an incentive legislative framework and dedicated infrastructure to attract the major players in the sector who have rushed there. Fact, its growth would be more linked to institutional activity than to practical imperatives or peer-to-peer exchanges.
However, let us not underestimate the attractiveness of cryptos for individuals, especially in Saudi Arabia where an astonishing survey by KuCoin has identified 3 million users including 37% women (with or without the permission of a guardian?), i.e. 14% of the population. Thus, in the Chainanalysis study, the absolute monarchy appears in third place among countries for the growth of its crypto market when the United Arab Emirates is positioned in fifth.
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