Crypto Adoption: The UAE Leading Regionally With 72% Users Investing In Bitcoin, New Research Reveals
Bitget Research, a branch of the leading global cryptocurrency exchange and Web3 entity Bitget, has unveiled comprehensive findings on the surge of cryptocurrency adoption across the Middle East. The report meticulously analyses the factors driving adoption and their effects on consumer patterns within the crypto space.
The study highlights a dramatic increase in daily crypto trading activities, showcasing an average of 500,000 local traders in 2024, which represents a 166% growth from the previous year. The UAE is at the forefront of this adoption wave, with a staggering 72% of its crypto users investing in Bitcoin. The report also notes a widespread reliance on international centralized exchanges over local platforms across the region, anticipating a rise to 700,000 daily traders by the end of 2024. Factors contributing to this growth include favorable regulatory environments, the endorsement of Bitcoin ETFs, and the growing appeal of digital currencies amid an escalating market.
The UAE's dominant stance as the epicenter of cryptocurrency activity in the Middle East is attributed to its crypto-friendly policies, making it a beacon for investors and traders alike. The country's progressive regulatory adjustments, moving from prohibitions to more accommodating frameworks, are enabling a smoother influx of investments, projects, and new participants into the crypto ecosystem.
Survey data within the report reveal a high level of interest in digital currencies among UAE users, with 29% viewing them as a more efficient asset holding method. Moreover, 34% are engaged in trading, while 22% utilize cryptocurrencies for daily transactions. A significant majority, 72%, have invested in Bitcoin, branding it as "digital gold."
The reliance on global centralized exchanges is underscored by their popularity over local alternatives, attributed to a broader variety and higher liquidity of assets offered, alongside the ease of local currency transactions. Decentralized exchanges (DEXs) and platforms such as Uniswap, Pancakeswap, and Raydium, operating on blockchains like Solana, BSC, and Ethereum, are also highlighted as preferred trading venues. Wallet preferences among Middle Eastern users are primarily toward Trust Wallet, MetaMask, Phantom, Coinbase Wallet, and Bitget Wallet.
Projected trends indicate a significant uptick in cryptocurrency adoption, with daily active users in the Middle East expected to ascend from 330,000 in 2023 to approximately 700,000 by the end of 2024. This trajectory is fueled by encouraging regulatory landscapes and the investment allure of digital assets amidst a flourishing market.
Gracy Chen, Managing Director of Bitget, expressed optimism regarding the Middle East's market potential and the UAE's pivotal role within the region. "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 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."
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