Data shows that cryptocurrency inflows and outflows on darknet markets hit a new all-time high last year, despite law enforcement’s success in taking down some of the world’s largest marketplaces for illicit goods and services.
According to research conducted by blockchain analytics firm Chainalysis, darknet markets’ cryptocurrency revenue hit a new all-time high last year, with portals selling illicit goods and services making over $790 million.
Per Chainalysis’ report, for the first time since 2015 darknet markets increased their share of incoming cryptocurrency transactions, going from 0.04% in 2018 to 0.08% in 2019. Its figures show darknet market transactions still make up less than 1% of the total cryptocurrency space’s transactions, although these platforms are seemingly growing.
The report said that despite various law enforcement crackdowns on popular darknet markets, when one goes down another successfully satisfies customer demand. Per the report:
“On average, each active market in 2019 collected more revenue than those active in any other year, apart from during the height of Silk Road’s heyday in 2012 and 2013.”
Also darknet market transaction activities are not heavily influenced by price movements. While transactions to exchanges, gambling sites, and merchants surged in July, transactions to darknet markets only experienced a less dramatic rise.