As Iran’s economy continues to grapple with severe sanctions, high inflation and a weakening currency, many citizens are turning to cryptocurrencies as an alternative financial lifeline.
Last blockchain data shows a edged enhance in Bitcoin withdrawals and transfers to personal wallets, especially during periods of unrest and internet restrictions. For many Iranians, digital assets now serve both as a hedge against currency collapse and a way to move funds outside government-controlled systems.
Since 2018, the Iranian rial has lost approximately 90% of its value against the US dollar, while inflation has been hovering in the 40-50% range. In response, cryptocurrency operate continues to grow, with Iran’s total cryptocurrency activity expected to reach an estimated $7.78 billion in 2025, according to Chainalytic.
BTC's price trends sideways on the daily chart. Source: BTCUSD on Tradingview
Bitcoin operate increases during protests and internet blackouts
Cryptocurrency activity increased during mass protests that began in overdue December 2025, sparked by rising costs of living and currency devaluation. As demonstrations spread, authorities imposed internet blockades and tightened financial controls.
During this period blockchain data showed higher average daily transaction values and a noticeable enhance in transfers from Iranian exchanges to self-managed Bitcoin wallets.
Some of the biggest increases were seen in smaller payouts, often linked to individual users. Medium and immense transfers also increased, suggesting that both households and businesses sought to move funds away from local platforms.
Bitcoin’s appeal lies in its ability to be stored and transmitted without relying on national banks or state supervision. For Iranians struggling with restrictions on access to cash, foreign currencies or international transfers, cryptocurrencies offer a way to preserve value and maintain some financial mobility.
The dual role of cryptocurrencies: citizens and state actors
While ordinary Iranians operate cryptocurrencies to protect their savings, state-linked entities are also dynamic in the digital asset space.
Wallets linked to Iran Islamic Revolutionary Guard Corps (IRGC) accounted for more than half of the country’s cryptocurrency transaction value in the last quarter of 2025. These wallets received more than $3 billion during the year, up from about $2 billion in 2024.
Western authorities believe the IRGC uses cryptocurrencies to bypass sanctions, move funds across borders and support regional operations. Chainalytic notes that these numbers likely underestimate the true scale, as many associated wallets and networks remain unidentified.
At the same time, the spikes in Iranian crypto activity come on the heels of major political and security events, including the Kerman bombings in 2024, missile attacks in October 2024, and a 12-day conflict in June 2025 that disrupted operations of Iran’s largest cryptocurrency exchange and its main state bank.
Growing dependence on digital resources
For many Iranians, cryptocurrencies have become more than just a speculative asset. They are increasingly used as a tool for financial survival in an economy marked by inflation, sanctions and narrow access to global markets. Bitcoin’s censorship resistance and portability make it particularly attractive during periods of unrest or capital controls.
As economic pressures persist and geopolitical tensions remain high, blockchain analysts expect cryptocurrency operate in Iran to continue to grow. Digital assets are now a central part of Iran’s financial landscape, whether they are used to protect personal assets or mitigate sanctions.
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