Iran’s Crypto Ecosystem Spikes to $7.8B Amid Mass Protests
- Iran’s crypto ecosystem reached $7.78 billion in 2025, according to Chainalysis
- Bitcoin withdrawals surged as protests escalated and the rial collapsed
- Users moved funds from local exchanges to personal wallets at higher rates
- Chainalysis says Bitcoin has become an “element of resistance” in Iran
- Crypto is increasingly used for value preservation and financial mobility
Crypto usage in Iran has surged amid widespread protests and deepening economic instability, with Bitcoin increasingly used as a tool for value preservation and financial autonomy, according to a new report from Chainalysis.
Protests erupted across Iran in late December following worsening economic conditions, triggered by the Iranian rial hitting record lows against the US dollar. As demonstrations spread nationwide, authorities reportedly responded by restricting internet access, while international human rights organizations alleged the use of lethal force against protesters.
Against this backdrop, Chainalysis reported that Iran’s crypto ecosystem reached approximately $7.78 billion in 2025. The firm noted that activity accelerated during the unrest, with sharp increases in both the number of daily crypto transfers and the total value transacted.
Bitcoin Withdrawals Surge During Unrest
One of the most notable trends identified by Chainalysis was a spike in withdrawals from Iranian crypto exchanges to personal, unattributed Bitcoin wallets.
“Most telling is the surge in withdrawals from Iranian exchanges to unattributed personal Bitcoin wallets,” the report said, noting that Iranians were taking direct custody of Bitcoin at significantly higher rates during the protests than before.
Chainalysis described this behavior as a rational response to the collapse of the Iranian rial, which has lost nearly all of its value and become effectively unusable against major currencies such as the euro. In an environment marked by inflation, capital controls and financial uncertainty, Bitcoin has increasingly served as an alternative store of value.
Crypto as an Element of Resistance
Beyond capital preservation, Chainalysis said Bitcoin has taken on a broader role during Iran’s unrest.
The firm described BTC as “an element of resistance,” providing liquidity and optionality in an increasingly restricted economic environment. Unlike traditional financial assets that are often illiquid or subject to government oversight, Bitcoin’s self-custodial and censorship-resistant properties offer greater flexibility.
This flexibility is particularly relevant in situations where individuals may need to operate outside government-controlled financial systems or relocate quickly under unstable conditions.
Chainalysis noted that similar patterns have been observed in other regions experiencing war, economic turmoil or government crackdowns, where Bitcoin withdrawals tend to rise during periods of instability.
Government and Institutional Crypto Activity
The report also highlighted the Iranian government’s own involvement in crypto activity. According to Chainalysis, addresses linked to the Islamic Revolutionary Guard Corps (IRGC) accounted for roughly half of Iran’s total crypto ecosystem activity in the fourth quarter of 2025.
IRGC-associated wallets reportedly received more than $3 billion in crypto over the course of last year, underscoring the dual-use nature of digital assets within sanctioned and restricted economies.
Crypto Likely to Remain a Critical Tool
Additional data from TRM Labs estimated that Iran recorded approximately $3.7 billion in total crypto flows between January and July 2025. Meanwhile, Statista estimates that around seven million Iranians — out of a population of roughly 92 million — are crypto users.
“As sanctions pressure and international opprobrium intensify, and Iran’s economic volatility persists, cryptocurrency will likely remain a crucial tool for Iranians seeking financial sovereignty,” the Chainalysis team concluded.
