Turkey has surged ahead as the Middle East and North Africa’s (MENA) largest crypto market, clocking nearly $200 billion in annual transactions. But a new report by Chainalysis suggests that much of this explosive growth rests on speculative trading rather than genuine adoption.

Turkey Leads MENA’s Crypto Race

In its latest regional study published Thursday, Chainalysis revealed that Turkey’s crypto market now outpaces every other country in the MENA region by a wide margin. The country’s total transaction volume reached $200 billion in the past year, dwarfing the United Arab Emirates’ $53 billion and exceeding the combined totals of Egypt, Saudi Arabia, Morocco, Jordan, and Israel.
High inflation and a weakening lira have made digital assets increasingly attractive to Turkish investors seeking alternatives to traditional currencies. However, the report indicates that much of this trading activity has been driven by institutional investors rather than retail participants.

Speculative Trading Takes Center Stage

Chainalysis found that Turkey’s crypto growth is fueled primarily by speculative trading rather than practical use cases such as payments or remittances. Unlike the UAE, where digital assets are gradually being integrated into real-world financial applications, Turkey’s market is dominated by short-term trading and profit-seeking behavior.
A key driver of this trend is the surge in altcoin trading. Chainalysis data shows that Turkey’s 31-day moving average for altcoin volumes jumped from around $50 million in late 2024 to $240 million by mid-2025. This dramatic increase marks a notable shift from previous years, when stablecoins were the preferred choice for Turkish traders seeking a hedge against inflation.

Decline in Stablecoin Activity

The shift toward riskier altcoins coincided with a sharp drop in stablecoin volumes. Chainalysis reported that Turkey’s stablecoin trading, measured by the 31-day centered moving average, fell from over $200 million in late 2024 to around $70 million by mid-2025.
According to the report, this change may reflect a growing appetite for higher yields amid regional economic uncertainty. “The timing of this altcoin surge coincides with broader regional economic pressures,” Chainalysis noted, adding that the behavior points to “desperate yield-seeking” among traders.
Institutional players have been the main force behind the boom, while retail participation has declined sharply. This suggests that inflation and rising living costs may be limiting the ability of average citizens to invest in crypto, even as large-scale traders continue to treat it as a hedge or speculative tool.

Economic Challenges Drive Institutional Focus

Turkey’s ongoing struggle with inflation has played a major role in shaping its crypto dynamics. For many institutional investors, digital assets have become a way to offset the impact of currency devaluation. Yet, Chainalysis points out that this institutional dominance could also be widening the gap between professional traders and everyday investors.
The report highlights that while crypto remains an attractive option for hedging and diversification, it has not yet evolved into a tool for broad-based financial inclusion in Turkey.

MENA Still Trails Global Markets

Despite Turkey’s heavy trading volumes, the MENA region as a whole continues to lag behind other global crypto hubs. Chainalysis recorded a 33% year-over-year increase in regional crypto activity, compared with 69% growth in the Asia-Pacific region and 63% in Latin America. Sub-Saharan Africa, North America, and Europe also posted higher growth rates of 55%, 50%, and 43%, respectively.
Globally, India maintained its position as the world’s largest crypto market for the third consecutive year, followed by the United States, according to Chainalysis’s September report.
Turkey’s dominance in the MENA region underscores its growing importance in the global crypto landscape. However, the report suggests that the country’s reliance on speculative trading, rather than real-world adoption, could make its market more vulnerable to volatility and downturns in investor sentiment.