"Iran sees surges in crypto transfers whenever geopolitical crises hit"

JH Kim

Summary

Chainalysis said Iran has shown a pattern in which crypto trading volume and on-chain transfer volume surge when geopolitical crises occur.
It said that after the U.S. and Israeli airstrikes, about $10.3 million worth of virtual assets flowed out from major platforms in Iran, calling it a long-term pattern.
It assessed that amid a weakening rial and high inflation in Iran, virtual assets have emerged as an alternative for storing value and transferring funds for both individuals and the state.

Forecast Trend Report by Period

An analysis found that Iran’s virtual asset (cryptocurrency) market has shown a pattern of sharp spikes in trading volume and on-chain transfer volume whenever a geopolitical crisis occurs.

According to crypto-focused media outlet The Block on the 3rd (local time), blockchain data analytics firm Chainalysis said that “from after the U.S. and Israeli airstrikes on Feb. 28 (local time) through March 2, about $10.3 million worth of virtual assets flowed out from major platforms in Iran,” adding that “this movement is not a one-off reaction but a long-term pattern that has repeatedly occurred whenever domestic unrest or regional clashes break out.”

It also assessed that “incidents such as clashes with Israel and anti-government protests have driven declines in the value of the Iranian rial and high inflation, and in this environment, virtual assets have emerged as an alternative for both individuals and the state to store value and transfer funds.”