Iran’s cryptocurrency market reached $7.8 billion in 2025, with increased Bitcoin adoption driven by protest movements, according to Chainalysis

Cryptocurrency Activity Surges in Iran Amid Economic Crisis

Amid escalating economic turmoil and a rapidly depreciating national currency, Iran has experienced a dramatic rise in cryptocurrency transactions, reaching close to $7.8 billion in 2025, according to a recent analysis by blockchain research firm Chainalysis.

Chainalysis reports that digital currencies are increasingly fulfilling two major functions within Iran: they offer ordinary citizens a financial lifeline during times of instability, and they serve as a growing tool for state-affiliated groups seeking to bypass international sanctions.

“For Iranians facing soaring inflation rates between 40% and 50% and a government struggling to maintain economic order,” Chainalysis noted, “cryptocurrencies are more than just a means to evade sanctions—they provide an escape from a collapsing financial system dominated by a regime under pressure.”

The $7.78 billion in crypto activity marks a significant jump from the previous year. As demonstrations intensified in late December and the government imposed widespread internet blackouts, many Iranians began transferring funds from exchanges to personal wallets, reflecting a loss of trust in state-controlled financial institutions.

Bradley Rettler, a senior fellow at the Bitcoin Policy Institute, explained that this move toward self-custody during periods of protest highlights Bitcoin’s appeal in countries where financial repression and currency instability are prevalent.

“When people live in fear of government overreach, face financial censorship, or watch their currency lose value, Bitcoin becomes an attractive alternative,” Rettler told Decrypt. “As these pressures mount, we can expect more people to turn to Bitcoin. The only way to maintain private access to your Bitcoin is to move it into a personal wallet, which is exactly what’s happening in Iran.”

Since its launch in 2009, Bitcoin has been adopted by activists and dissidents as a means of circumventing traditional payment systems. Its prominence grew in 2011 when WikiLeaks began accepting Bitcoin donations after being cut off by PayPal.

Research published in the International Review of Economics & Finance found that during crises such as the COVID-19 pandemic and conflicts in Ukraine and Palestine, Bitcoin usage tends to rise as access to banks and payment systems becomes restricted.

While the report highlighted increased adoption of Bitcoin among protesters, it also revealed a surge in crypto activity linked to the state. Chainalysis found that addresses associated with Iran’s Islamic Revolutionary Guard Corps received over half of all crypto value entering the country in the last quarter of 2025, based on their analysis of sanctioned wallets.

State Involvement and the Broader Impact of Bitcoin in Iran

“The IRGC is a major economic force in Iran. Their embrace of Bitcoin sends a message both domestically and internationally about its perceived value,” Rettler remarked. He also referenced Human Rights Foundation activist Alex Gladstein, who describes Bitcoin as a “Trojan horse for freedom.”

Chainalysis cautioned that their reported figures likely underestimate the true extent of state participation in Bitcoin transactions. Their research focused on addresses already flagged by U.S. and Israeli authorities, omitting unidentified intermediaries, shell companies, and facilitators that may also be involved in moving digital assets.

Overall, the findings indicate that Bitcoin has become deeply embedded in Iran’s financial system, serving both individuals seeking to safeguard their savings and sanctioned entities maneuvering around international restrictions.

“Political leaders may acquire Bitcoin as an investment, but this often encourages citizens to learn about and adopt it themselves,” Rettler explained. “When they do, they discover a form of money that is resistant to manipulation, offers substantial privacy, and cannot be easily censored.”

He concluded, “By pursuing wealth through Bitcoin, those in power inadvertently grant their people greater financial freedom.”