Middle East Cryptocurrency Adoption Surges Amid Economic Uncertainty
The adoption of cryptocurrencies in the Middle East has accelerated significantly due to various economic and geopolitical factors. According to Zaid Belbagi, managing partner at London's Hardcastle Advisory, digital assets are increasingly used as a means to preserve and quickly transfer capital, rather than just as an investment tool.
The annual volume of on-chain transactions in the region grew from about $100 billion in 2022 to around $350 billion in 2025-2026. This growth is attributed to macroeconomic pressure, devaluation of national currencies, and government programs for digitalization.
In response to the Israel-Iran conflict in June 2025, Bitcoin dropped by approximately 2.3% to $105,200, while Ethereum lost 7.5%. However, investors soon shifted towards more stable assets, with Bitcoin's share of total capitalization rising to 64.8%.
The continuous operation of crypto platforms during the conflict highlighted their resilience and flexibility in times of crisis. In contrast, traditional financial systems were disrupted, with stock exchanges suspending trading in some countries.