Turkey's cryptocurrency market is set to reach a transaction volume of $200 billion by 2025, driven by the depreciation of the lira and high inflation, according to Chainalysis. The surge is primarily fueled by altcoin trading, as institutional investors seek higher yields, while retail participation declines. Despite a ban on crypto payments by the Central Bank of the Republic of Turkey (CBRT), digital assets are increasingly used for international remittances and real-world asset tokenization. Regulatory developments are underway, with the 2024 Capital Markets Law amendment introducing a legal framework for exchanges, including anti-money laundering compliance and a 2% annual transaction fee. Additionally, a proposed 0.03% transaction tax and the digital lira project aim to integrate cryptocurrencies into the formal economy. Major banks like Garanti BBVA and Akbank are now offering crypto services, indicating growing legitimacy. However, challenges such as volatility, security risks, and compliance costs persist, as Turkey seeks to balance innovation with regulatory oversight.