Israel’s cryptocurrency economy has experienced significant growth, particularly following the national crisis triggered by the October 7, 2023, attacks, according to a recent Chainalysis report.

From 2024 to 2025, the country saw crypto inflows surpassing $713 billion in a steady expansion in line with prior trends. Before the attacks, transaction volumes in Israel closely matched expected activity, with deviations averaging just -0.3%. Following the attacks, however, volumes consistently exceeded forecasts and averaged $0.66 billion more per month than predicted.

Israel’s Retail Crypto Activity Explodes

Overall, actual activity surpassed anticipated levels by 60.4% on average, demonstrating a constant increase rather than a temporary surge in response to crisis conditions. This pattern has continued through 2024 and into 2025, in what Chainalysis has deemed to be a lasting behavioral shift among Israeli crypto users and positioning digital assets as a financial refuge during periods of national uncertainty.

The blockchain data platform noted that similar trends have been observed in other countries facing crises, such as Ukraine and Iran, where crypto adoption spiked in response to geopolitical disruptions.

Analysis by transfer size indicates that this growth is largely retail-driven. Small transfers of under $1,000 and mid-range transfers between $1,000 and $10,000 show the most significant spikes. Small retail transfers reached nearly six times their January 2022 baseline in early 2025, while mid-range retail activity grew roughly four to five times over the same period.

Institutional and professional transaction segments also increased, but at a comparatively restrained rate. The retail-led nature of this growth is similar to patterns seen in other regions affected by conflict or economic stress, as individual citizens turned to cryptocurrencies as alternative financial tools.