Under the dual pressures of geopolitical tensions and domestic unrest, Iran's cryptocurrency ecosystem surpasses $7.78 billion

According to a Chainalysis analysis report, under the dual pressures at home and abroad, Iran's cryptocurrency ecosystem has significantly accelerated its growth compared to the previous year. Its on-chain funds increased from over $2 billion in 2024 to more than $3 billion in 2025.

Data shows that by 2025, the size of Iran's cryptocurrency ecosystem has exceeded $7.78 billion, and its on-chain cryptocurrency trading activity has become a "barometer" reflecting the country's political situation.

Major geopolitical and domestic conflict events, such as the missile attack on Israel in October 2024, the 12-day Iran-Israel war in June 2025, and large-scale protests within the country, have all triggered a significant surge in cryptocurrency trading activity in the nation.

Analysis indicates that the Islamic Revolutionary Guard Corps (IRGC) (IRGC) dominates this ecosystem development. Notably, IRGC-controlled on-chain addresses accounted for over half of Iran's total cryptocurrency received in Q4 2025.

These funds are widely used to support IRGC's proxy networks in the Middle East, conduct illegal oil trade, facilitate money laundering, and evade international sanctions.

It is worth noting that this figure is only a "minimum estimate" based on known addresses, and the actual economic activities conducted by IRGC through shell companies and undisclosed wallets may be even larger.

Moreover, cryptocurrencies have also become an essential financial lifeline for ordinary Iranians coping with severe inflation (up to 40-50%) and the rapid devaluation of the local currency, the rial (which has plummeted about 90% since 2018).

Especially during recent social unrest, the frequency of withdrawals of Bitcoin to personal wallets from domestic exchanges has increased significantly. This reflects that Iranians are increasingly using Bitcoin as a censorship-resistant store of value, seeking financial security and autonomy outside the traditional financial system.

In summary, for the IRGC, which holds power, cryptocurrency is a geopolitical lever to evade sanctions and maintain regional influence; but for ordinary citizens under that power, it is a refuge and resistance tool amid economic collapse and political repression.

Looking ahead, as internal and external pressures deepen, the infiltration and evolving role of cryptocurrency in Iran's economy and society warrant ongoing industry attention.