According to the latest report from Chainalysis, Iran's cryptocurrency ecosystem has expanded to approximately $7.8 billion by 2025, which shows that digital assets are increasingly embedding themselves into the country's economic and political structures amid sanctions, disputes, and domestic turmoil.
The report notes that Iran's cryptocurrency activities are closely linked to major geopolitical and domestic events, indicating that on-chain data shows a sharp increase in activity during periods of heightened military tensions, cyber attacks, and nationwide protests.
Analysts suggest that this trend indicates that cryptocurrency is playing a dual role as a national-level financial instrument and a private alternative to the rapidly devaluing local currency.
Approximately half of Iran's cryptocurrency activity is attributed to the Islamic Revolutionary Guard Corps (IRGC)
One of the key findings of the report is that the IRGC's dominance in Iran's cryptocurrency economy is growing.
Chainalysis estimates that addresses associated with networks linked to the IRGC accounted for about 50% of Iran's total cryptocurrency activity as of Q4 2025.
Funding received by IRGC-related wallets exceeded $3 billion in 2025, an increase from over $2 billion in the previous year. The report explains that the IRGC is expanding its use of digital assets for operational funding, cross-border capital movement, and support for regional proxy forces.
This figure is regarded as a conservative estimate based solely on public identification wallets associated with the sanctions list.
These results align with the influence of the IRGC, which dominates a wide range of sectors in the Iranian economy, including energy, infrastructure, and trade.
Surge in cryptocurrency activity during conflicts and political shocks
According to Chainalysis data, Iran's cryptocurrency activity surged significantly during periods of missile attacks involving Israel, cyber attacks targeting Iranian financial institutions, and the escalation of regional conflicts in 2024 and 2025.
The report also notes that cryptocurrency transactions noticeably increased during large-scale protests and government-imposed internet shutdowns, suggesting that blockchain activity is becoming a measurable indicator of domestic political and economic stress levels.
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Analysts state that, in light of this correlation, blockchain data can be used as a real-time metric for measuring geopolitical instability, providing insights more quickly than traditional economic indicators.
Iranians seeking refuge, surge in Bitcoin withdrawals
As state-linked actors expand their use of cryptocurrency for strategic purposes, the report highlights another trend in the private sector: the surge in Bitcoin withdrawals to personal wallets from Iranian exchanges during times of turmoil.
Chainalysis observed a significant increase in the number and amount of transactions moving to personal Bitcoin wallets in the weeks leading up to large-scale protests and internet shutdowns between late December 2025 and early January 2026.
These behavioral patterns suggest that Iranians are opting for self-custody to protect their assets amid concerns over capital controls, currency devaluation, and financial surveillance.
The Iranian rial has lost about 90% of its value since 2018, with inflation estimated to be around 40-50%.
In this environment, the report points out that the mobility and censorship resistance of Bitcoin are increasing its appeal as a means of capital preservation.
Blockchain data emerging as a geopolitical intelligence tool
Chainalysis stated that Iran's cryptocurrency functions as a dual-purpose financial system supporting both sanctioned state actors and ordinary citizens living under economic instability.
The company explains that the ability to observe these dynamics on-chain provides governments, regulatory authorities, and financial institutions with a new tool to assess the effects of sanctions, capital outflows, and political risks in near real-time.
The report predicts that as pressure on Iran from the international community continues and domestic volatility persists, cryptocurrency will remain a key component of Iran's financial infrastructure and a subject of intense debate.
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