TL;DR
- Chainalysis reported that Turkey led the Middle East and North Africa region with nearly $200 billion in crypto transactions in the past year.
- However, most of this activity was driven by speculative trading rather than sustainable adoption.
- Altcoin trading has soared while stablecoin usage declined, showing growing institutional dominance and shrinking retail participation amid persistent inflation.
Turkey has become the most active cryptocurrency market in the Middle East and North Africa (MENA), with crypto transactions nearing $200 billion over the last twelve months. The country’s trading activity surpassed the United Arab Emirates and other regional players, fueled largely by domestic investors seeking protection from the lira’s steep depreciation and tightening monetary conditions.
While this surge reflects a strong appetite for digital assets, Chainalysis emphasized that speculation—not adoption—remains the key driver behind Turkey’s rapid growth. The firm’s onchain research revealed that trading behavior, especially in altcoins, has outpaced real crypto utility for payments or remittances. Local exchanges such as Paribu and BtcTurk have seen a massive increase in new account openings, while foreign platforms report record inflows from Turkish IP addresses.
Altcoin Trading Outpaces Stablecoins
Turkey’s crypto ecosystem has undergone a striking transformation. Altcoin trading volumes have exploded, rising from an average of $50 million in late 2024 to nearly $240 million by mid-2025, according to Chainalysis. This marks a clear shift from the country’s former reliance on stablecoins such as USDT, whose volumes dropped from over $200 million to just $70 million in the same period.
Analysts suggest this shift mirrors investor behavior under prolonged economic strain, as traders chase higher returns amid inflation exceeding 60%. Still, experts warn that such speculative momentum could increase exposure to volatility risks, particularly as global liquidity tightens.
Institutional Players Dominate Market Flows
The report highlights that institutional trading now accounts for the majority of Turkey’s crypto activity, while retail participation has dropped sharply. Large entities, including funds and corporate investors, appear to be using crypto as a hedge against the weakening lira and capital restrictions.
Despite the speculative tone, Turkey’s position underscores its growing role in regional finance. Although the MENA region grew 33% year-over-year, it still trails Asia-Pacific and Latin America, where crypto adoption is more widespread.
For Turkey, sustaining this momentum may depend on transforming speculation into real-world crypto integration—a shift that could reshape the region’s financial landscape if achieved, particularly as regulators prepare new digital asset frameworks aimed at balancing innovation with investor protection.
