According to Chainalysis, cryptocurrency usage in Iran has surged amid mass protests within the country, with a wave of Iranians withdrawing Bitcoin to preserve value amid the instability.
Protests in Iran began around December 28 over the deteriorating economic situation after the Iranian rial hit a record low against the US dollar. The demonstrations escalated across the country, prompting the Iranian regime to reply by blocking web access, carrying out mass arrests and killing 1000’s.
Chainalysis said in a report on Thursday that Iran's crypto ecosystem reached $7.78 billion in 2025, accelerating amid ongoing unrest with a major increase within the variety of every day crypto transfers and amounts traded.
“Most telling is the rise in withdrawals from Iranian exchanges to unallocated personal Bitcoin wallets. This increase suggests that Iranians are significantly more prone to take possession of Bitcoin throughout the protests than before,” it said.
“This behavior represents a rational response to the collapse of the Iranian rial, which has lost just about all of its value, making it virtually worthless against major currencies reminiscent of the euro.” During the unrest in Iran, the variety of every day crypto transfers and transaction amounts increased significantly. Source: Chainalysis
Chainalysis noted that the Iranian government has also turned to cryptocurrency, with Islamic Revolutionary Guard Corps (IRGC) cryptocurrency activity accounting for half of all the crypto ecosystem within the fourth quarter of 2025 and IRGC-affiliated addresses receiving a complete of greater than $3 billion last 12 months.
Crypto is an element of the resistance
According to Chainalysis, Bitcoin’s (BTC) role throughout the unrest in Iran just isn’t just limited to capital preservation; It has also “develop into a component of resistance, providing liquidity and selection in an increasingly constrained economic environment.”
“Unlike traditional assets, that are illiquid and sometimes subject to government control, BTC’s censorship resistance and self-governance provides financial flexibility – particularly helpful in a situation where individuals might have to flee or operate outside government-controlled financial channels.”
Chainalysis said it found that other regions experiencing “war, economic unrest, or government crackdowns” also saw increased Bitcoin withdrawals during times of instability.
Crypto will likely remain a very important tool
TRM Labs tracked total crypto flow in Iran of around $3.7 billion between January and July 2025. At the identical time, based on Statista, it’s estimated that around seven million people in another country's 92 million inhabitants are crypto users.
“As sanctions pressure and international disapproval increase and economic volatility continues in Iran, cryptocurrency will likely remain an important tool for Iranians searching for financial sovereignty,” the Chainalysis team said.
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