Crypto Market Growth in Turkey: Inflation Pushes Investors Toward Riskier Assets
Date: 2025-10-27 Author: Henry Casey Categories: IN WORLD
A study by analytics company Chainalysis found that, amid 33% inflation, Turkish citizens are increasingly turning to digital assets as a way to preserve their savings. Unlike the United Arab Emirates, where cryptocurrencies are actively used for international transfers and purchases, in Turkey they are becoming a tool for short-term investments and speculation.
According to Chainalysis, the average 31-day altcoin trading volume in Turkey increased from $50 million at the end of 2024 to $240 million by mid-2025. At the same time, stablecoin transactions declined, from $200 million to $70 million. Analysts attribute this trend to investors seeking higher returns amid economic pressure and a weakening national currency.
The report's authors note that the surge in interest in risky tokens coincided with a period of serious economic problems in the country. While large Turkish companies are actively expanding their presence in the crypto market, the share of retail traders is declining. This, according to experts, indicates that businesses are attempting to use digital assets as a hedge against currency risks, while private investors are at a disadvantage due to limited access to financial resources.
Chainalysis representatives emphasize that the Turkish cryptocurrency market is becoming increasingly volatile and focused on short-term speculation. Altcoins are taking a leading position in local investor portfolios, displacing more stable assets.
Meanwhile, the country's government is taking steps to strengthen regulation of the sector. According to Bloomberg, Turkish authorities are drafting a bill that would allow the Masak financial intelligence agency to freeze accounts and cryptocurrency accounts if there is suspicion of money laundering or other financial crimes. This move is aimed at increasing market transparency and combating illegal transactions, but experts believe the new measures could also impact liquidity and private user activity.
Thus, the growth of the crypto market in Turkey reflects not only citizens' desire to protect their savings from inflation but also broader economic trends: capital outflow from traditional instruments, declining confidence in the national currency, and the search for alternative sources of income.
