A recent analysis by cryptocurrency analysis firm Layergg argued that the Middle East and North Africa (MENA) region is rapidly adopting blockchain technology, which could potentially impact some altcoins.
The report highlights some important developments in the region. While there was an important initiative in the gaming industry in Dubai, Abu Dhabi had launched the $2 billion Web3 Initiative. Saudi Arabia is also taking important steps with the Neom City Project.
Layergg's analysis shows that the balance of power in the crypto market is shifting from China to the US, triggered by the approval of the Bitcoin Spot ETF and the hefty $4.3 billion fine imposed on Binance and CZ.
As a result of these developments, Binance's market share fell below 50%, indicating its waning influence amid a number of regulatory challenges. On the other hand, Coinbase is in a strategic position to capture capital inflows from traditional finance venture capitalists thanks to its partnership with BlackRock.
As the approval of the Bitcoin spot ETF approaches, Binance urgently needs a breakthrough. Richard Teng, newly appointed CEO of Binance, is preparing to lead a major transformation with a strong focus on Dubai and Abu Dhabi, according to analysts.
According to the report, since 2022, the MENA region has increasingly adopted pro-crypto policies, and Richard Teng's strong network and deep experience in Abu Dhabi are seen as crucial for Binance's MENA expansion. Binance is strategically expanding into MENA by leveraging Teng's insights and connections.
In 2023, the MENA region has shown great interest in blockchain, and regulations and licenses are becoming more pro-crypto. As interest in the MENA region grows, the following projects as part of the MENA theme may attract attention in the market, according to Layergg:
- Dubai: XRP, TON, CRO, WEMIX, SIDUS
- Abu Dhabi: NPT, IOTA
- Saudi Arabia: ONIT, SAND
Considering that rumors of CZ's resignation have been ongoing since June, it is likely that Binance made its strategic decisions long before these rumors became public. This suggests that Binance's entry into Japan and the UAE may have been a strategic move planned long before these rumors emerged.
It appears that Binance aims to shift the dynamic from the US versus Binance scenario to a broader Asia and MENA framework versus the US. Therefore, according to analysts, more projects are expected to enter the MENA region and the MENA theme is expected to gain more attention.
*This is not investment advice.
