The good trend was also experienced by investors in the United Arab Emirates, who saw financial returns on their cryptocurrency investments of $204 million. In terms of total gains realized by cryptocurrency investors, the UAE ranked second in the GCC, with the Saudi Arabian community cashing out gains totaling $351 million. None of the other GCC nations were listed among the top 50 worldwide by Chainalysis.

By doing further in-depth research, Chainalysis was able to determine that Bitcoin (BTC) is the preferred cryptocurrency among investors in the United Arab Emirates. Seventy percent of the gains made by investors in the United Arab Emirates last year came from this asset class, which produced impressive results.


As expected, Ethereum (ETH) emerged as the second most well-liked cryptocurrency among investors in the United Arab Emirates. It provided 24% of the gains realized by investors in the nation. Just 3% of the returns on deposits made by UAE investors through 2023 were accounted for by XRP, the native cryptocurrency of the Ripple network, which came in third position.

The extreme ubiquity of Ethereum and Bitcoin among UAE investors reflects a certain level of sophistication. Clearly, the community is supporting dependable digital assets with track records of reliability over more speculative cryptocurrencies. This isn't surprising, as we've also seen that institutional investments make up the majority of cryptocurrency transactions in the United Arab Emirates, according to Kim Grauer, director of research at Chainalysis.

Interestingly, investors in cryptocurrency in Bangladesh, Pakistan, India, and the Philippines realized gains of $2.07 total, ranking sixth, twenty-fifth, twenty-fifth, and forty-ninth on the worldwide top 50 list, respectively.

inclination towards digital assets

The inclusion of these nations' people, who collectively make up more than 60% of the UAE's population, in our top 50 ranking is particularly encouraging for the growth of the country's cryptocurrency scene. There is more potential for cross-border transactions aided by cryptocurrencies in these countries due to the strong demand for digital assets, which will probably be bolstered by favorable market performance. The UAE government has shown that it is eager to lead this development, according to Grauer.
 

Grauer gave the following assessment of the worldwide cryptocurrency market outlook for 2024: "The outlook is encouraging, but past performance shouldn't be taken as a guarantee of future results." Thus far, the promising developments of 2023 have continued into 2024, with prominent digital assets like Bitcoin reaching record highs following the approval of its ETF and growing institutional traction. We might see growth more in line with those observed in 2021 if current trends persist.