As Iran’s economic and political pressures intensify, new analysis from Chainalysis shows that cryptocurrency has moved from a fringe alternative to a core financial outlet for both ordinary citizens and powerful state-linked actors.
With inflation hovering between 40% and 50% and the national currency having lost roughly nine-tenths of its value since 2018, digital assets are increasingly filling the gaps left by a collapsing monetary system.
Key Takeaways
- Crypto activity in Iran surged past $7.7 billion in 2025, with transaction spikes closely tied to protests, attacks, and regional conflicts.
- Wallets linked to the Islamic Revolutionary Guard Corps now dominate Iran’s crypto economy
- During mass protests, Iranians sharply increased Bitcoin withdrawals to personal wallets,
The data paints a picture of a country where financial stress, civil unrest, and geopolitical conflict are directly reflected on-chain. Crypto activity tied to Iran surged to more than $7.7 billion in 2025, accelerating sharply compared with the previous year. These flows did not grow evenly. Instead, transaction volumes spiked around moments of national trauma and regional escalation, suggesting that blockchain activity has become a real-time indicator of political instability.
Political shocks mirrored on-chain
Chainalysis notes that major events consistently triggered bursts of crypto usage. The January 2024 bombing in Kerman, deadly exchanges between Iran and Israel later that year, and a brief but intense conflict in mid-2025 all coincided with sharp increases in on-chain transfers. Cyberattacks against key Iranian institutions and exchanges during these periods further fueled capital flight, pushing users toward decentralized and self-custodial options.
This pattern reinforces a broader trend seen in other crisis-hit regions: when trust in institutions erodes, crypto usage rises not gradually, but suddenly.
The IRGC’s expanding role in Iran’s crypto economy
While citizens increasingly turn to digital assets for protection, the report highlights a parallel and more troubling development. Wallets linked to the Islamic Revolutionary Guard Corps have steadily increased their share of Iran’s crypto flows. By late 2025, addresses associated with IRGC-linked networks accounted for more than half of the total value received inside the country.
On-chain estimates show these wallets handling over $2 billion in 2024 and more than $3 billion in 2025, even before accounting for undisclosed affiliates or shell structures. Analysts warn these figures likely understate the true scale, as new sanctioned addresses continue to be identified across global facilitation networks.
Bitcoin withdrawals surge during protests
The most striking shift emerged during the latest wave of protests. As demonstrations intensified and authorities imposed widespread internet restrictions, transfers from Iranian exchanges to private wallets rose sharply. Withdrawals into personal Bitcoin addresses accelerated, signaling a rush toward self-custody.
This behavior suggests Bitcoin is serving a dual role: a hedge against a rapidly devaluing currency and a tool for financial autonomy. Its portability and resistance to censorship offer flexibility that traditional assets cannot, particularly in an environment where access to banks and liquidity can disappear overnight.
Chainalysis concludes that as sanctions mount and volatility persists, crypto will remain embedded in Iran’s economic reality. For analysts, the blockchain is no longer just a ledger of transactions, but a window into how geopolitical pressure reshapes financial behavior in real time.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
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Source: https://coindoo.com/iran-turns-to-bitcoin-amid-economic-collapse-and-mass-protests/
