Majority of Crypto Transactions in the UAE Exceed $1 Million
A recent report from Chainalysis, a blockchain data analytics platform, has revealed that the majority of cryptocurrency transactions in the United Arab Emirates (UAE) from July 2022 to June 2023 were whale transactions, crossing over $1 million each.
Institutional Investments Dominate UAE Crypto Transactions
According to the report, institutional investments accounted for over 67% of cryptocurrency transactions in the UAE during the specified period. Professional investments ranging from $10,000 to $1 million followed, while retail investments up to $10,000 only accounted for 4.63% of transactions.
The Director of Research at Chainalysis, Kim Grauer, highlighted that this trend reflects the growing interest among organizations and high-net-worth individuals in the UAE to include cryptocurrencies in their investment portfolios. Grauer also commended the country’s leadership for providing regulatory clarity and establishing itself as a global crypto hub.
Decentralized Exchanges Thrive in the UAE
The report also noted that the UAE had a higher share of crypto activity on decentralized exchanges compared to centralized exchanges, with decentralized exchanges accounting for over 48% of activity and centralized exchanges accounting for 46%.
UAE Outperforms MENA Region in Crypto Market
Although the UAE’s crypto market value dropped by 17% over the past year, reaching over $34 billion this year, it still outperformed other countries in the Middle East and North Africa (MENA) region.
DeFi and NFTs Gain Popularity in the UAE
The Decentralized Finance (DeFi) sector has seen significant popularity in the UAE since 2022, indicating the success of the country’s innovation-friendly regulatory frameworks. Additionally, the report revealed that despite the decline in Non-Fungible Tokens (NFTs) since 2022, the UAE had over 4 million web traffic visits to NFT sites from July 2022 to June 2023.
Chainalysis Cryptocurrency Adoption Ranking
In a separate release, Chainalysis ranked countries based on grassroots crypto adoption. The report highlighted that countries from the Central & Southern Asia and Oceania (CSAO) region, including India, Vietnam, the Philippines, Indonesia, Pakistan, and Thailand, were leading the way in crypto adoption.
Hot Take: UAE Dominates Institutional Crypto Transactions
The UAE has emerged as a dominant player in institutional cryptocurrency transactions, with whale transactions exceeding $1 million. This trend reflects a growing interest among organizations and high-net-worth individuals in adding cryptocurrencies to their investment portfolios. The country’s innovative regulatory frameworks have fostered the popularity of decentralized exchanges and facilitated the growth of the DeFi sector. Despite a decline in NFTs globally, the UAE has seen significant web traffic visits to NFT sites. As Chainalysis highlights, the UAE’s performance in the crypto market outshines other countries in the MENA region. Overall, this data reaffirms the UAE’s position as a global crypto hub.
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