Middle East Crypto Activity Surges Amid Regional Conflict
- Annual blockchain transactions in the Middle East and North Africa are projected to reach $350 billion by 2025–2026, up from approximately $100 billion in 2022.
- The ongoing Iran conflict has driven a significant portion of regional capital into digital assets, particularly Bitcoin.
- Investors initially sold off Bitcoin alongside other risk assets, but later shifted back, increasing Bitcoin’s market share to a one-month high of 64.8%.
- Countries like Egypt, Turkey, Lebanon, and Iran have seen increased use of Bitcoin and stablecoins due to currency depreciation.
- The UAE and Bahrain are attracting crypto firms by establishing regulatory frameworks to support the industry.
The report highlights how regional conflicts have accelerated the shift towards digital assets as investors seek alternatives during economic disruptions. The growing adoption of cryptocurrencies underscores their role as a hedge against uncertainty in regions facing sanctions or currency instability.
Blockchain transaction value in MENA is expected to more than triple by mid-decade due to increased demand for financial alternatives amid geopolitical tensions. (Source)
