Bitcoin and Ethereum Lose Market Share in MENA Region: Chainalysis

The two most valuable cryptocurrencies are losing their foothold in some parts of the world, according to data from Chainalysis.

Bitcoin dominates 22% of worldwide value received, and Ethereum commands 8%, while altcoins account for 24% of volume, and stablecoins reach a whopping 44%.

The gap widens on a national basis, with altcoins receiving 32% of the interest from traders residing in Israel, while BTC gets 20% and ETH grabs a meager 7%. Stablecoins account for 40%.

Numbers coming out of Turkey show that the local population is especially interested in stablecoins, with 55% of all value received passing through these types of tokens. That’s 11% more than the global average.

While the numbers regarding stablecoins aren’t exactly novel – the sector has a $170 billion market cap that’s ever-expanding – altcoins on the rise is a trend to keep an eye on. Especially if we consider that the region is dominated by institutional and professional activity, with 93% of transactions worth $10,000 or more.

Though the data provided by Chainalysis doesn’t include a breakdown of which cryptocurrencies are favored by these entities, it does suggest that they have a higher risk profile than other regions where BTC and ETH usage is higher.

Turkey Is The Big Winner

One country stands out, according to Chainalysis: Turkey.

Turkey, which lies at the border of Asia and Europe, lands in 11th place for value transacted through cryptocurrencies, which isn’t a surprise considering the deadly devaluation of its currency (the Turkish lira) in recent years.

Between July 2023 and June 2024, Turkey nearly tripled the amount of value received through digital assets from its closest follower in the region, Saudi Arabia, with $137 billion.

Meanwhile, Chainalysis reports that Saudi Arabia and Qatar are the fastest-growing countries in the MENA region. Both nations registered more than 100% growth year over year, eclipsing more mature markets like Israel, which had less than 50% YoY growth.

Saudi Arabia and Qatar’s growth can be attributed to favorable regulations, as the former is now home to traditional finance giants, the likes of Rothschild, Goldman Sachs, and Lazard. Goldman Sachs has been spearheading a number of crypto-native projects, with three tokenization projects underway across the world – one of which is likely to land in Saudi Arabia.

DeFi Dominates UAE

Another notable finding is the impressive growth of DeFi in countries like the United Arab Emirates (UAE).

Chainalysis reported that the total value received by DeFi services, including DEXs, grew by 74% compared to last year. The amount received by DEXs alone grew by 87% to $11.3 billion from an estimated $6 billion.

The UAE is an interesting outlier in the region since its crypto activity is expanding across all transaction size brackets, said Chainalysis, which hints at more balanced and comprehensive adoption. The nation received over $30 billion in crypto between July and June 2024, ranking it among the top 40 globally and making it the MENA region’s third-largest crypto economy.