Crypto Trading in Iran Slumps 80% After US-Israeli Strikes, But Market Structure Holds: TRM Labs

Reading Time: < 1 minute

Iran’s cryptocurrency sector has suffered a dramatic drop in activity following recent US and Israeli military strikes, yet the underlying market infrastructure remains intact, according to a new report from blockchain analytics firm TRM Labs.

In a blog post published Monday, TRM said transaction volumes across Iranian crypto exchanges plunged by about 80% between Feb. 27 and March 1. The sharp contraction coincided with the start of US-Israeli strikes on Feb. 28 and was largely attributed to sweeping internet restrictions imposed within the country in the immediate aftermath of the attacks.

Despite the severe decline in trading activity, TRM described the domestic ecosystem as continuing to function in what it called a “risk-managed state.” Major Iranian exchanges have remained online, though some have introduced temporary safeguards such as suspending or batching withdrawals, reducing available market depth, and issuing risk advisories to users navigating the volatile environment.

The Central Bank of Iran also stepped in, instructing leading platforms — including Nobitex, Wallex, and Tabdeal — to halt trading of the USDT-toman pair, a key gateway between digital assets and the local fiat currency. When trading eventually resumed, markets showed signs of strain. According to TRM, thinner order books and short-lived price dislocations pointed to weakened liquidity conditions.

Nobitex, the country’s largest exchange, registered roughly $3 million more in combined inflows and outflows after the onset of the strikes. However, TRM emphasized that these movements were not necessarily unusual when viewed against the backdrop of the platform’s typical operational activity.