Bitcoin’s use in darknet markets continues to grow: Chainalysis

advertisement

The use of bitcoin in darknet markets, such as for buying illegal drugs, has continued to grow, according to data from Chainalysis. However, its share on such markets accounts for less than 1% of all bitcoin transactions, according to Elliptic.

In its new Crypto Crime Report, published Tuesday, Chainalysis said over $600 million worth of bitcoin was spent on darknet markets during Q4 of 2019. Bitcoin’s use in legal activities, such as for trading at crypto exchanges and merchant services, however, surpassed its use on darknet markets.

Source: Chainalysis

Chainalysis further found that bitcoin’s use on darknet markets is “less influenced” by the highs and lows of the cryptocurrency.

“While all categories see spikes in July around the same time as a Bitcoin price surge, darknet markets exhibit a much less dramatic spike than the others,” said Chainalysis. “Looking across the entire year, darknet markets’ transaction activity remains within a much narrower volume range, suggesting that customer behavior is less influenced by changes to Bitcoin’s price.”

Last October, The Block’s Steven Zheng also researched cryptocurrencies’ use in darknet markets and found that bitcoin remains the most widely accepted cryptocurrency on these platforms, followed by monero and litecoin. Nearly 93% of the darknet markets Zheng examined accepted bitcoin for payment.

While bitcoin remains the most popular crypto for darknet activities, its share accounts for less than 1% of all bitcoin transactions, according to recently available data from blockchain analysis firm Elliptic.

Related Reading

Get Your Crypto
Daily Brief

Delivered daily, straight to your inbox.

Why BTG Pactual is launching a crypto platform

Brazil-based BTG Pactual, Latin America’s biggest investment bank, is launching its own crypto asset platform that will initially support bitcoin and ether trading. The platform will be called Mynt and allow customers to purchase bitcoin and ether, BTG Pactual’s Head of Digital Assets André Portilho tells The Block. Eventually, the platform will support other digital […]
Read Full Story
Sep 24, 2021, 9:17PM UTC

TRON USDC now available

Delivering on a vision for an interoperable global standard for dollar digital currency, Circle and TRON have partnered to make USD Coin (USDC) available on the TRON blockchain, which has grown to more than 56 million accounts and nearly 2.5 billion transactions since its founding just four years ago. TRON is home to a broad ecosystem for digital assets in Asia and around the world, and the TRON community can now benefit from easy access to the world's fastest-growing, regulated dollar digital currency. 
Read Full Story
Sponsored Post
More