Key facts
- Annual blockchain transaction value across the Middle East and North Africa is projected to reach $350 billion by 2025-2026.
- This figure is more than triple the approximately $100 billion recorded in 2022.
- Regional conflicts, particularly the Iran conflict, are increasing demand for digital assets as a hedge against economic and geopolitical uncertainty.
- Bitcoin's market share rose to a one-month high of 64.8% as investors shifted from riskier cryptocurrencies.
- Countries experiencing currency instability are increasingly using Bitcoin and stablecoins to preserve purchasing power.
- Regulated Gulf markets, such as the UAE and Bahrain, are attracting institutional capital and crypto firms.
The Middle East and North Africa (MENA) region has seen a significant surge in cryptocurrency activity, with annual blockchain transactions estimated to reach $350 billion by 2025-2026, a threefold increase from approximately $100 billion in 2022. According to a report by the Bitcoin Policy Institute, ongoing regional conflicts, particularly involving Iran, are driving this trend as investors seek to preserve wealth and find financial alternatives outside traditional systems.
While Bitcoin initially experienced a sell-off alongside other risk assets following escalations between Israel and Iran in June 2025, it later stabilized and saw its market share increase to 64.8% as investors moved away from riskier cryptocurrencies. The report highlights that cryptocurrencies are increasingly being used as a hedge against economic and geopolitical uncertainty, currency depreciation, and inflation.
Countries such as Egypt, Turkey, Lebanon, and Iran have seen a growing adoption of Bitcoin and U.S. dollar-pegged stablecoins to maintain purchasing power amid currency instability. In contrast, regulated markets in the Gulf, including the UAE and Bahrain, continue to attract institutional capital and strengthen their positions as digital asset hubs. Crypto firms like Kraken's parent company, Payward, have received regulatory authorization in Dubai, signaling continued institutional interest.
Recent data from Chainalysis indicated that approximately $10.3 million moved out of Iranian crypto exchanges in early March following U.S.-Israeli airstrikes, though the nature of these transfers remains varied.