Darknet Markets Account For Only 0.08% of All Incoming Crypto Transactions: Chainalysis

  • In 2019, darknet sales increased by 70% and for the first time, it surpassed $700 million
  • Active markets collected more revenue than ever, except in 2012 and 2013
  • Chainalysis expects more darknet markets to accept privacy coins like Monero in 2020

In 2019, cryptocurrency prices weren’t the only ones that saw an increase but the darknet market also grew. Its transaction activity actually hasn’t been influenced by the ebbs and flows of the crypto markets and other seasonalities.

According to Chainalysis, after a decline in 2018, the total darknet sales increased by 70% in 2019 to more than $790 million worth of cryptocurrency.

This has been the first time that the sales surpassed $600 million and for the first time since 2015, darknet market share of overall incoming transactions increased, doubling from 0.04% in 2018 to 0.08% in 2019.

Darknet markets total share of incoming activity remains “extremely low” but Chainalysis states,

“recent increased volume speaks to the resilience of darknet markets in the face of heightened law enforcement scrutiny.”

The trend that remained intact was that the vast majority of these transactions flow through exchanges. Exchanges are the most common service customers use to send cryptos to vendors and then sending these funding to cash out.

Active Darknet Markets Collected Huge Revenues

In 2019, eight of the darknet markets closed but eight new ones took their place, keeping the total number of active markets steady at 49. Each of these active markets also collected more revenue than ever, except during the height of Silk Road’s heyday in 2012 and 2013.

This revenue was driven by more purchases rather than larger ones. While the median purchase size remained constant in USD value, the number of transfers jumped yet again from 9 million to 12 million.

“This suggests that either more customers bought from darknet markets in 2019, or that old customers are making more purchases.”

Darknet Markets Implement Safety Features

In the darknet markets, drugs remains a popular choice. Markets specializing in other illicit goods also bring in sizable funds.

Chainalysis report finds that some of these darknet markets have begun implementing user safety features such as multi-signature technology and wallet-less escrow also knowns as direct deposit. Some are even adopting new infrastructure to avoid shutdowns by law enforcement.

Going forward, Chainalysis expects more darknet markets to accept or mandate the usage of privacy coins like Monero as used by Empire which it says “could change in 2020.”

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

AnTy
AnTy
AnTy has been involved in the crypto space full-time for over two years now. Before her blockchain beginnings, she worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,469FansLike
2,795FollowersFollow
4,234FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

DeFi App Aave Creates First Credit Delegation Loan to DeversiFi Decentralized Exchange

DeFi lending platform, Aave completes its first-ever ‘credit delegation’ as DeversiFi borrows over $230,000 without posting collateral. The service agreement was signed on...

Bitcoin Futures Trading at a High Premium; Already Hitting $12,000 on CME

Bitcoin has yet again gained momentum, with people expecting for $12k to hit soon. According to analyst Mati Greenspan, for a sustainable rally, a...

Polkadot (DOT) Launches The First Parachain Implementation Testnet, Rococo

Polkadot introduces parachain functionality with Rococo testnet, a Proof of Authority (PoA) network, allowing users to send direct messages to the Relay Chain and...

Bitcoin Self-Custody Provider Casa Now Allows Users to Buy BTC via Apple Pay

Bitcoin self custody service provider, Casa now allows its customers to buy and hold their own bitcoin. Selling BTC is not supported yet. According...

Four Top Chinese State-Owned Banks Are Testing The Chinese Digital Yuan Project (DCEP)

In an unconfirmed report, four Chinese state-owned banks are gradually testing the ‘digital renminbi’ wallet app and Digital Currency/Electronic Payment (DCEP) system in different...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today