Global crypto markets amassed $37.6 billion in 2023
UAE crypto investors gained $200 million
The global crypto markets experienced a robust resurgence in 2023, witnessing a substantial recovery from the tumult of the previous year.
According to Chainalysis, a leading blockchain data company, the global crypto investor community amassed total gains of $37.6 billion during the year, marking a significant rebound from the losses of $127.1 billion incurred in 2022.
UAE investors contributed notably to this upward trend, realising capital gains amounting to $200 million from their crypto ventures.
While this figure falls below Saudi Arabia’s gains of $351 million, the UAE secured the second spot in the GCC for absolute gains among crypto investors.
However, none of the other GCC nations made it to Chainalysis’ list of the top 50 countries globally regarding gains.
UAE favours Bitcoin
Chainalysis’ analysis reveals Bitcoin (BTC) as the preferred cryptocurrency among UAE investors, constituting 70% of their total gains in 2023. Ethereum (ETH) followed closely, contributing 24% to the gains.
Surprisingly, XRP, the native token of the Ripple network, accounted for only 3% of the gains on UAE investors’ portfolios throughout the year.
Kim Grauer, Director of Research at Chainalysis, attributed the preference for Bitcoin and Ethereum to the maturity of UAE investors, who opt for established digital assets with proven performance over speculative cryptocurrencies.
Grauer noted that institutional investments predominantly drove crypto transactions in the UAE, reflecting a growing confidence in the market.
Remarkably, investors from India, the Philippines, Pakistan, and Bangladesh collectively realised gains of $2.07 billion, ranking 6th, 20th, 25th, and 49th, respectively, on Chainalysis’ global top 50 list.
Strong demand
Grauer expressed optimism about the potential for further development in the UAE’s crypto community, fuelled by the strong demand for digital assets in these populous nations.
Looking ahead to 2024, Grauer highlighted positive market trends, with assets like Bitcoin reaching all-time highs following ETF approvals and increased institutional adoption.
While cautioning against relying solely on past performance as an indicator of future outcomes, Grauer stressed the encouraging outlook for the crypto market this year.
Chainalysis calculates cryptocurrency gains using on-chain data, tracking the movements of crypto assets in and out of services and facilitating fiat currency conversions.
Chainalysis estimates total gains based on the differences between asset withdrawals and deposits by measuring macro-level flows of select assets traded on major centralised exchanges.
This methodology allows Chainalysis to provide robust estimates of gains across popular assets traded on centralised exchanges, distributing these gains to individual countries based on web traffic share.
The company employs a similar framework to calculate its annual Global Crypto Adoption Index, providing valuable insights into crypto market trends and investor behaviour.
Featured image: The UAE secured the second spot in the GCC for absolute gains among crypto investors. Credit: Kanchanara
Last Updated on 9 months by News Desk 1
