Crypto on The Rise: Inside MENA’s Most Dynamic Digital Asset Boom

The MENA region has emerged as one of the most compelling examples of sustained cryptocurrency adoption, with transaction volumes surpassing $60 billion at their peak in December 2024.

Although 2025 has seen moderate cooling, the region continues to post strong year-over-year growth, supported by record monthly flows observed in late 2024. This resilience is particularly noteworthy given the region’s ongoing geopolitical tensions and diverse economic pressures, underscoring the staying power of digital assets within MENA’s evolving financial ecosystem.

According to Chainalysis’ 2025 geography of crypto report, while MENA’s 33% period-over-period growth trails developing markets like APAC (69%) and Latin America (63%), the region’s internal diversity reveals how cryptocurrencies can take on different roles depending on local conditions. This dynamic is most visible in Türkiye, the region’s largest crypto market, which leads the MENA crypto index and records nearly $200 billion in annual transactions, almost quadruple that of the UAE ($53 billion).

Israel follows with $22 billion, reflecting shifts in usage patterns shaped by geopolitical disruption. Iran, meanwhile, maintains significant transaction activity through a semi-isolated crypto ecosystem adapted to circumvent international sanctions.

Türkiye: A Market Defined by Necessity and Speculation

Türkiye stands out as MENA’s most complex and influential cryptocurrency case. Its soaring transaction volumes appear driven less by long-term stability and more by speculative trading and economic necessity. As the country faces persistent inflation, currency devaluation, and reduced purchasing power, many citizens and institutions have increasingly turned to crypto as an alternative store of value, hedge, or investment vehicle.

Since 2021, Türkiye has seen unparalleled growth in gross crypto inflows—reaching approximately $878 billion by mid-2025, outpacing all regional markets combined. This expansion accelerated during periods of intense volatility for the Turkish lira, suggesting that financial instability may have pushed both individuals and institutions toward digital assets. Despite severe inflation, crypto adoption has continued to rise, driven by the search for financial stability outside traditional systems.

Retail Contraction Amid Institutional Strength

A closer look at year-over-year transaction growth shows an uneven trend across user groups. While Türkiye’s overall cumulative volumes remain high, retail participation has contracted sharply. Professional traders ($10,000–$1 million) saw their growth decline from 41.6% to just 4.1%, while large retail ($1,000–$10,000) and small retail (under $1,000) segments moved into outright negative growth.

These declines stand in stark contrast to the institutional segment, where transaction sizes above $1 million showed only moderate deceleration. This divergence indicates that economic pressures reduced disposable income, affordability challenges, and increased caution, which may be limiting retail participation even as inflation should theoretically drive citizens toward crypto.

Part of this shift may also be linked to Türkiye’s regulatory reforms enacted in 2024. Measures targeting illicit finance, enhanced KYC requirements, withdrawal controls, and restrictions on margin and yield products have significantly reshaped the retail trading landscape.

Surge in Speculative Altcoin Trading

Despite the downturn in retail participation, speculative activity is booming. The 31-day moving average of crypto exchange volume shows a dramatic rise in altcoin trading, with volumes surging from around $50 million to more than $240 million by mid-2025. This marks the first time altcoin trading has eclipsed stablecoin activity, signaling a shift toward higher-risk, higher-volatility assets.

Four Distinct Narratives Across MENA

The region’s major markets highlight four unique patterns of crypto adoption:

• Türkiye: Massive growth driven by speculative behavior and economic necessity.

• UAE: A regulated, innovation-driven hub attracting institutional players.

• Israel: Increased crypto usage amid national crises and uncertainty.

• Iran: A self-contained, sanctions-resistant ecosystem enabling continued digital asset activity.

Collectively, these narratives demonstrate the flexibility of digital assets across different environments, from speculative investment to crisis hedge to structured regulatory innovation.

As the MENA region navigates economic instability, shifting regulations, and geopolitical challenges, cryptocurrency’s adaptive nature continues to shape its expanding role in the global financial landscape.