Important points:
- Among GCC countries, the UAE ranks second in terms of profits from cryptocurrency investments in 2023.
- The UAE is now ranked 38th among the top 50 countries, with earnings of $204 million.
- According to investors, the most popular cryptocurrency in the country is Bitcoin.
According to Chainalysis report
According to a recent survey, the cryptocurrency market in the United Arab Emirates (UAE) saw tremendous growth in the last year. According to a Chainalysis study, the UAE recorded significant capital gains of $204 million in 2023 from its cryptocurrency investments.
The UAE ranked second among GCC countries, only ranking 38th out of 50 countries with notable gains from cryptocurrency investments. Saudi Arabia topped the GCC list with a profit of $351 million and reached 26th position among the top 50 countries. There were no other GCC nations on the list.
Particularly, the United States led the growth, with overall gains of $9.36 billion. The United Kingdom came in second with a profit of $1.39 billion. Vietnam, China, Indonesia, and India are examples of high- and lower-middle-income countries that have gained $1.18 billion, $1.15 billion, $1.96 billion, and $1.05 billion, respectively.
Bitcoin is the most popular cryptocurrency in the UAE
The study also revealed that investors in the UAE prefer Bitcoin above all other cryptocurrencies. “This asset class delivered strong results for UAE investors, accounting for 70% of the total profits they made last year,” according to Chainalysis. The second and third most popular cryptocurrencies in the UAE were Ethereum and Ripple’s XRP, respectively. Kim Grauer, research director at Chainalysis, said this.
The overwhelming ubiquity of Ethereum and Bitcoin among UAE investors reflects a certain level of sophistication. Instead of more speculative cryptocurrencies, the community is supporting well-established digital assets with consistent and demonstrated performance.
The study also revealed that cryptocurrency investors worldwide would gain $37.6 billion in 2023. According to Chainalysis, “Following last year’s turmoil, asset prices and market sentiment have recovered positively, making 2023 a year of strong recovery for global crypto markets.”
