Crypto usage in Iran has increased amid mass protests in the country, with a wave of Iranians withdrawing Bitcoin to preserve its value amid uncertainty, according to Chainalysis.
Protests in Iran began around December 28 against deteriorating economic conditions, after the Iranian rial hit a record low against the US dollar. Protests intensified across the country, with the Iranian regime responding by cutting off internet access, carrying out mass arrests and killing thousands of people.
Chainalysis said in a report on Thursday that Iran’s crypto ecosystem reached $7.78 billion in 2025, accelerating amid the ongoing unrest with a substantial increase in the number of daily crypto transfers and amounts traded.
“Most telling is the increase in withdrawals from Iranian exchanges to unallocated personal Bitcoin wallets. This increase suggests that Iranians are taking ownership of Bitcoin at a significantly higher rate during the protests than before,” he said.
“This behavior represents a rational response to the collapse of the Iranian rial, which has lost almost all of its value, effectively rendering it worthless against major currencies like the euro.”
There has been a significant increase in the number of daily crypto transfers and the amount transferred during the unrest in Iran. Source: On-Chain Analysis
Chainalysis noted that the Iranian government has also turned to crypto, with the Islamic Revolutionary Guard Corps (IRGC) crypto activity accounting for half of the total crypto ecosystem as of Q4 2025, with addresses associated with the IRGC receiving over $3 billion in total last year.
Crypto is part of the resistance
Chainalysis stated that Bitcoin (BTC) its role during the unrest in Iran is not limited to the preservation of capital; it has also become “an element of resistance, providing liquidity and optionality in an increasingly restricted economic environment”.
“Unlike traditional assets which are illiquid and often subject to government control, BTCThe censorship-resistant and self-guarding nature of . provides financial flexibility – particularly valuable in a situation where individuals may need 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 an increase in Bitcoin withdrawals during times of instability.
Crypto will likely remain a crucial tool
TRM Labs tracked approximately $3.7 billion in total crypto flows into Iran between January and July 2025. At the same time, approximately seven million people, out of the country’s 92 million population, are believed to be crypto users, according to Statista.
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“As sanctions pressure and international opprobrium mount and Iran’s economic volatility persists, cryptocurrency will likely remain a crucial tool for Iranians seeking financial empowerment,” the Chainalysis team said.
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