Crypto use in Iran surges as the economy collapses and protests escalate

According to Chainalysis, Iran’s crypto economy reached $7.78 billion in 2025, with activity peaking during the street demonstrations that broke out after the national currency collapsed.

The protests began in late December, when the Iranian rial hit a new all-time low against the U.S. dollar. The unrest quickly escalated into nationwide demonstrations. Authorities responded with violent crackdowns and repeated internet shutdowns, which further increased demand for cryptoassets as an alternative means of preserving capital.

Chainalysis recorded a sharp rise in daily crypto transfers and transaction volumes during the unrest. One of the clearest indicators was the spike in bitcoin withdrawals to personal wallets – a sign that users were moving funds off centralized exchanges to avoid state control.

Analysts describe the trend as a “rational response to the collapse of the rial,” which has lost nearly all its value against the dollar and the euro.

A substantial share of Iran’s crypto activity involves not only private citizens but also state-linked entities. Chainalysis reports that addresses tied to the Islamic Revolutionary Guard Corps (IRGC) received more than $3 billion in 2025 and accounted for half of the country’s crypto flow by the fourth quarter.

Experts say cryptocurrencies have become not just a store of value but a tool of resistance. Bitcoin’s decentralized architecture and ability to bypass state restrictions have made it essential in an environment where traditional financial channels are blocked or heavily controlled.

TRM Labs also reported high levels of crypto movement: between January and July 2025, roughly $3.7 billion in cryptoassets passed through Iran. Statista estimates that about 7 million residents – roughly 8% of the population – are already using cryptocurrencies.