Cryptocurrency is experiencing a boom in the Middle East, with the number of daily traders skyrocketing 166% year-over-year according to a new report by Bitget Research.

This surge places the region at the forefront of global crypto adoption, with over 500,000 daily active users reported in February 2024. While local exchanges haven't quite caught their stride yet, users are turning to established global platforms to fuel their crypto trading.

UAE Emerges as Crypto King

The United Arab Emirates has emerged as the regional leader in crypto adoption per capita. Boasting a peak of 106,111 daily active users in 2024, the UAE demonstrates a clear enthusiasm for digital assets. Interestingly, Saudi Arabia, despite its larger population, saw a peak of 129,397 daily users – showcasing a potential for even greater growth.

Year-over-year statistics paint a similar picture. While the UAE saw a healthy 68% increase in daily traders, Morocco took the crown for the fastest growth rate, with a staggering 148% year-over-year jump.

Beyond the Hype: Crypto and Islamic Finance

Bitget's report explores the evolving relationship between cryptocurrency and Islamic beliefs. Historically, concerns about volatility and potential links to gambling have made some wary of crypto. However, with increased regulation and a clearer understanding of the technology, Muslim countries are starting to embrace crypto's potential.

Decentralized Dreams: DEXs Gain Traction

While centralized exchanges (CEXs) dominate the landscape, there's also a growing interest in decentralized finance (DeFi). Users are exploring platforms like Uniswap, PancakeSwap, and Raydium to tap into the world of DeFi. Popular crypto wallets in the region include Trust Wallet, MetaMask, Phantom, Coinbase Wallet, and Bitget Wallet.

Looking Ahead: A Crypto Oasis in the Middle East?

Bitget predicts the number of daily active crypto users in the Middle East to reach 700,000 by the end of 2024. The UAE, with its progressive stance on crypto regulation, is poised to become a regional hub for talent, capital, and crypto enterprises. While recent regional conflicts have caused temporary market fluctuations, the long-term outlook for crypto adoption in the Middle East appears bright.