Turkey's Crypto Market Grows on Altcoin Speculation
Date: 2025-10-24 Author: Gabriel Deangelo Categories: IN WORLD
According to research by Chainalysis, Turkey has become the largest crypto market in the Middle East and North Africa region, with an annual transaction volume of approximately $200 billion. However, analysts note that this growth is primarily due to speculative activity rather than the widespread adoption of digital currencies in the economy.
The report emphasizes that Turkish investors, faced with years of inflation, view cryptocurrencies primarily as a means of preserving capital. Despite this, the use of tokens for everyday payments and business remains limited. In comparison, in the UAE, digital assets are gradually being integrated into financial and commercial processes, while in Turkey, the market is focused on short-term speculation.
According to Chainalysis, the main driver of the Turkish crypto market has been the growth of altcoin trading. Average daily trading volumes increased from $50 million at the end of 2024 to $240 million by mid-2025. Meanwhile, interest in stablecoins, which previously dominated the market, has declined significantly: their trading volume fell from $200 million to $70 million over the same period.
Analysts attribute the surge in interest in riskier assets to domestic economic pressures. They say the rise in altcoins' popularity coincided with a period of financial hardship, when many investors were looking for ways to offset losses and increase returns.
The report also notes that the Turkish market is becoming increasingly institutionalized. Large funds and companies are increasing their presence, while the share of retail investors is declining. This is explained by the fact that professional market participants are using crypto assets to hedge currency risks, leaving fewer opportunities for individuals to actively participate.
Despite Turkey's dominant position, the MENA region as a whole is showing relatively modest growth rates. Cryptocurrency activity increased by 33% year-over-year, significantly lower than in the Asia-Pacific region (69%) or Latin America (63%).
Globally, Chainalysis notes that India has maintained its leadership in crypto transaction volume for the third consecutive year, with the United States in second place.
Thus, Turkey is showing impressive performance amid economic challenges, but its market structure is still based primarily on speculation rather than sustainable use of digital assets in the real sector.
