Iran's cryptocurrency market is projected to surge to $7.78 billion in 2025 as people withdraw Bitcoin to preserve their assets amid the collapse of the rial and political instability.
The use of cryptocurrencies in Iran has surged amid large-scale nationwide protests, with a wave of people turning to Bitcoin to protect their assets from the sharp devaluation of the local currency. According to the latest report from Chainalysis, released on Thursday, Iran's cryptocurrency ecosystem is projected to reach $7.78 billion in 2025 and continues to grow in both daily transaction volume and transaction value.
The protests began around December 28th due to deteriorating economic conditions, following the Iranian rial hitting a record low against the US dollar. The marches escalated nationwide, with the government's response including cutting off internet access, carrying out mass arrests, and reportedly causing thousands of casualties.
Bitcoin becomes a tool for financial resistance.
Chainalysis notes that the most notable sign is the surge in withdrawals from Iranian exchanges to anonymous, personal Bitcoin wallets. This increase suggests that Iranians are holding Bitcoin at a significantly faster rate during the protests compared to the preceding period. This behavior reflects a logical reaction to the collapse of the rial, which has lost almost all of its value and become nearly meaningless compared to major currencies like the euro.
The blockchain analytics firm also noted Bitcoin's Vai in the Iranian unrest is not limited to Capital preservation, but also serves as a tool of resistance, providing liquidation and flexibility in an increasingly constrained economic environment. Unlike traditional assets, which are often liquidation and subject to government control, Capital 's censorship-resistant and self-custodial nature offers exceptional financial flexibility, particularly valuable when individuals may need to relocate or operate outside government-controlled financial channels.
Notably, the Iranian government has also shifted to using cryptocurrency assets, with activities linked to the Islamic Revolutionary Guard Corps accounting for half of the total cryptocurrency ecosystem size in Q4 2025. Addresses associated with this organization received a total of over $3 billion last year.
TRM Labs tracked approximately $3.7 billion in total cryptocurrency flows in Iran from January to July 2025, while Statista estimates that around 7 million out of a population of 92 million are cryptocurrency users. Chainalysis believes that as sanctions pressure and international condemnation increase, and Iran's economic instability continues, cryptocurrencies are likely to remain an important tool for Iranians seeking financial autonomy.
