Chainalysis: UAE’s clear regulation forms a balanced and diversified crypto ecosystem, with DeFi adoption higher than the global average

In most countries or regions, crypto activity has grown at widely varying rates across the transaction size spectrum. But according to a recent Chainalysis report, the United Arab Emirates (UAE) is an exception, with growth across all sizes, indicating a “balanced and comprehensive adoption landscape” in the country. Chainalysis highlights that the UAE received more than $30 billion in crypto between July 2023 and June 2024, ranking in the top 40 countries globally. It adds that this growth is driven by a variety of factors, including regulatory innovation, institutional interest, and expanding market activity. Crypto received through small and large retail investor activity (transaction sizes below $1,000 and between $1,000 and $10,000, respectively) grew by more than 75% year-over-year. Meanwhile, the value received through institutional investor activity (transaction sizes between $1 million and $10 million) grew by more than 50% year-over-year. The UAE is the third-largest crypto economy in the MENA region. However, its crypto ecosystem is more diverse than other countries in the region, where crypto trading is mainly conducted through CEXs. The UAE has a higher DeFi adoption rate than the global average, with a large portion of trading taking place through DEXs. Globally, 27.8% of crypto trading is conducted through DEXs, while in the UAE, the proportion is 32.4%, the highest in the Middle East and North Africa region. The total value of crypto received through DeFi services in the UAE increased by 74% compared to last year, while the value of tokens received through DEXs increased by 87%, from around $6 billion to $11.3 billion. Since the UAE began attracting blockchain and crypto companies, the country's crypto activity has also escalated. Many companies, including Chainalysis and Bybit, have set up headquarters in the UAE, while others, such as Crypto.com, have established regional bases in the country. (CryptoSlate)