The price of crypto isn’t the same in every jurisdiction due to restrictions on capital flows. If the price of crypto is lower in a jurisdiction, then crypto generating activities such as mining or freelancing become more profitable. If the price is higher inside the jurisdiction, then smugglers are incentivized to sell goods for crypto. These activities will find a balance within the jurisdiction.

I don’t know enough about the Gaza crypto market to know which state it’s in. But generally, if people are desperate they will try to earn crypto online, and if smugglers can’t get cash out they’ll prefer crypto.