Iran Crypto Volume Drops 80% After US-Israel Strikes

• TRM highlighted that the latest transaction volume data is compatible with mechanical access limitations instead of the collapse in market infrastructure.
• The chief executive officer of Elliptic wrote in a report on March 2 about the rise in crypto asset outflows on February 28. 

The cryptocurrency ecosystem of Iran is still structurally sound regardless of contracting sharply after the United States and Israeli military strikes, as per a new report published by TRM Labs. 

On March 2, a published post mentioned that the blockchain analytics company mentioned that transaction volume on Iranian exchanges slipped by around 80% between Feb 27 and March 1, as per TRM data, a slip the firm allocates mainly to the country’s internet limitations after the initiation of US-Israeli strikes on Feb 28. 

Regardless of the hostile environment, TRM mentioned prominent domestic exchanges are still operational in a “risk-managed state”, with temporarily suspended or batched withdrawals, suppressed market depth, and issued risk guidance to users. 

The central bank of Iran pointed to various prominent platforms comprising Nobitex, Wallex, and Tabdeal to temporarily suspend trading of the USDT-toman pair, the main bridge between crypto and the domestic fiat currency. 

The Effect of Geopolitical Tensions 

When trading recommenced, thin order books and brief price dislocations indicated impaired liquidity, TRM mentioned. Meanwhile, the biggest exchange in Iran listed around $3 million more in combined inflows and outflows after the strikes started; TRM noted that these flows were not needless outliers in the topic of routine operations. 

This exposition deviates from the previous analysis by Elliptic, which reported that outflows on Nobitex surged 700% to around $3 million after the US and Israeli-caused attacks. The chief executive officer of Elliptic wrote in a report on March 2 that the rise in crypto asset outflows on February 28 primarily indicates capital flight from Iran. 

TRM highlighted that the latest transaction volume data is compatible with mechanical access limitations instead of the collapse in market infrastructure, adding that it warns against drawing conclusions for capital flight at this time. 

The findings follow the coordinated strikes on Iran by the U.S. and Israel on February 28, which killed the supreme leader of the country, Ayatollah Ali Khamenei. 

Highlighted Crypto News Today: 

U.S. Senate Housing Bill Links Affordability Reforms With CBDC Restrictions