Bitcoin transactions on darknet markets jumped 65% in value during the first quarter, according to research by a blockchain analytics firm. The amount of bitcoin sent from darknet entities to mixers also grew rapidly as exchanges with verification requirements became less popular among darknet users.
Growing Bitcoin Use on Darknet Markets
Crystal Blockchain’s analytics team published on Tuesday an analysis of the use of bitcoin on darknet markets. The researchers analyzed darknet interactions with exchanges and “other entities” throughout Q1 2020. The data obtained were then compared to historical darknet activity from the past three years. Other entities include “payment processors, gambling services, illegal services, miners, marketplaces, online wallets, ransom extortioners, scams, stolen coins, and/or others,” the team clarified. Crystal Blockchain is a crypto analytics platform developed by the Bitfury Group.
The researchers wrote, “The amount of money being transferred by darknet entities is still growing, and they are continuing to use bitcoin as a medium of transport,” adding:
The value of the amount of bitcoin transferred (measured in USD) grew by 65% … The mass adoption of bitcoin, as well as its ease of use and popularity, is a contributing factor.
“If we consider the amounts in USD, we see that darknet entities received and sent an increased amount of money — from $384m in Q1 2019 to $411m in Q1 2020,” the team continued. “This is partly explained by the growing capitalization of bitcoin, as well as further mass adoption of bitcoin. As it becomes increasingly easier to use cryptocurrency, the popularity of this payment method is steadily increasing.”
