Dominant Regional Player
Chainalysis research published on Thursday reveals that Turkey recorded nearly $200 billion in annual cryptocurrency transactions, establishing significant dominance across the Middle East and North Africa (MENA) region. This trading activity substantially outpaces all other MENA markets, although analysts are questioning the sustainability of this growth pattern.
The United Arab Emirates holds the second position in the region with $53 billion in crypto volumes, representing approximately one-fourth of Turkey's transaction levels. Turkey's outsized activity alone exceeds the combined volumes of Egypt, Jordan, Saudi Arabia, Morocco, and Israel.
Speculative Trading Drives Turkish Surge
However, on-chain data indicates that Turkey's surge stems primarily from speculative trading rather than practical adoption. This contrasts sharply with the UAE, where Chainalysis observed cryptocurrency transitioning from speculation toward use as a payment solution.
Altcoin trading drove much of Turkey's volume expansion, with the 31-day moving average jumping from approximately $50 million in late 2024 to $240 million by mid-2025. This represents a fundamental shift in Turkey's cryptocurrency market composition.
The altcoin surge coincided with a dramatic decline in stablecoin activity. Turkey's stablecoin trading volume dropped from above $200 million to around $70 million during the same period, based on the 31-day centered moving average. Chainalysis noted that this timing aligns with broader regional economic pressures.
The research firm suggested that the pattern may reflect desperate yield-seeking behavior among remaining market participants. Turkey has faced persistent high inflation in recent years, potentially driving increased cryptocurrency speculation.
Institutional Dominance and Retail Decline
Institutional transactions dominate Turkey's crypto market growth, while retail trading activity has fallen substantially. This concentration suggests that economic challenges are pushing larger players toward digital assets as inflation hedges and currency alternatives, possibly limiting everyday citizens' participation capacity.
Regional Growth Lagging Global Markets
Despite Turkey's strong performance, the MENA region trails other global markets in cryptocurrency growth. The region posted 33% year-over-year expansion, falling behind Asia-Pacific at 69% and Latin America at 63%. Sub-Saharan Africa, North America, and Europe achieved growth rates of approximately 55%, 50%, and 43%, respectively.