The MENA region's blockchain transactions are forecasted to exceed $350 billion by 2025–2026, driven by the ongoing conflict in Iran.
Significant Growth in Crypto Transactions Expected
Blockchain transactions in the Middle East and North Africa (MENA) are projected to soar to around $350 billion by 2025–2026, a dramatic increase from approximately $100 billion in 2022, according to a report from the Bitcoin Policy Institute.
The ongoing conflict in Iran is driving this surge, as investors increasingly turn to digital assets to protect their wealth during these uncertain times.
Shift in Investment Trends
Rather than leading to capital flight from the region, the Iran conflict has resulted in more investments being directed towards cryptocurrencies, particularly Bitcoin. The report explains that this trend underscores the growing importance of cryptocurrencies as a hedge against economic and geopolitical instability.
While Bitcoin initially experienced a price drop following the escalation of hostilities between Israel and Iran in June 2025, it has since regained traction. Investors have shifted focus back to Bitcoin, which increased its market share to a one-month high of 64.8% as it stabilized amidst ongoing conflict.
“Instead of acting as a safe-haven asset right away, Bitcoin's performance mirrored that of global equity markets as investors adopted a risk-off approach,” the report notes.
Regional Impact and Adoption
The report highlights that countries such as Egypt, Turkey, Lebanon, and Iran are witnessing a rise in Bitcoin and stablecoin usage as currency devaluations prompt individuals to seek alternative means of preserving purchasing power. It emphasizes that the current situation has not hindered regional adoption; rather, it has spotlighted the growing disparities within MENA.
In nations grappling with sanctions, conflict, or economic instability, cryptocurrencies have emerged as vital tools for wealth preservation and value transfer outside traditional financial systems. Meanwhile, regulated Gulf markets continue to attract institutional investments, reinforcing their status as leaders in the digital asset space.
Recent data from Chainalysis indicates that approximately $10.3 million left Iranian crypto exchanges shortly after U.S.-Israeli airstrikes in early March, illustrating how swiftly capital can be reallocated in response to geopolitical events.
The report also notes the proactive steps taken by the UAE and Bahrain to create inviting regulatory environments for crypto firms and institutional investors, further solidifying their roles in the evolving landscape of digital assets.
