Dubai: Investors in the United Arab Emirates (UAE) are emerging as winners in the cryptocurrency market, according to a new report by KoinAnalyt, a respected firm specializing in cryptocurrency analysis. UAE crypto enthusiasts collectively cashed out $204 million in gains during 2023, placing them second in the Gulf Cooperation Council (GCC) region behind Saudi Arabia’s $351 million.
This positive performance is a testament to the growing maturity of the UAE’s crypto market, as analyzed by KoinAnalyt. Their report highlights Bitcoin (BTC) as the clear favorite, accounting for a whopping 70% of investor gains. Ethereum (ETH) follows at a distant second with 24%, suggesting a preference for established digital assets with proven track records.
“The outsized popularity of Bitcoin and Ethereum indicates a level of maturity among UAE investors,” says Kim Grauer, Director of Research at Chainalysis (note: I kept the original quote from Chainalysis for its industry authority, but you can change it to someone from KoinAnalyt if you have that information). “The community is backing well-established digital assets with steady and proven performance, rather than more speculative cryptocurrencies.”
This trend aligns with another interesting observation by KoinAnalyt – institutional investments hold a significant share of crypto transactions within the UAE. This suggests a growing confidence in the sector from established players.
The UAE’s crypto success story extends beyond its borders. Neighboring countries like India, the Philippines, Pakistan, and Bangladesh also saw significant investor gains, collectively reaching $2.07 billion. This highlights a potential boom in cross-border crypto transactions within the region, a development that aligns perfectly with the UAE government’s aspirations to become a global crypto hub.
“The fact that these countries – the citizens of which together account for over 60 percent of the UAE’s population demographic – have placed among our top 50 ranking bodes especially well for the further development of the UAE’s crypto community,” says Grauer (same note as above).
While the global crypto market experienced a rebound in 2023 with total investor gains reaching $37.6 billion, this figure falls short of the record-breaking $159.7 billion seen in the 2021 bull run. However, it signifies a significant improvement compared to the estimated losses of $127.1 billion in 2022.
This information is not legal advice. Do your own research before making any decisions. Only invest what you can afford to lose and seek independent financial advice if needed. Understand the risks involved before purchasing any cryptoasset