Middle East Crypto Activity Surges to $350 Billion Amid Ongoing Conflict
According to a recent report by the Bitcoin Policy Institute, the Middle East and North Africa (MENA) region has seen a significant surge in crypto activity, reaching an estimated $350 billion in annual blockchain transactions by 2025-2026. This is more than triple the approximately $100 billion recorded in 2022.
The report attributes this growth to economic pressures and government efforts to develop crypto markets, but also notes that regional conflicts have accelerated capital outflows and pushed investors towards digital assets as a hedge against uncertainty.
The Iran conflict has been particularly noteworthy, with investors initially selling off risk assets before moving towards Bitcoin. The cryptocurrency's price stabilized despite continued fighting, and its share of the market reached a one-month high of 64.8%.
The report highlights the benefits of markets that remain open during disruption, citing the fact that crypto markets stayed operational around the clock while traditional markets were closed. This has led to increased adoption in countries experiencing sanctions, conflict, or currency instability.