A study found that darknet markets have astonishing numbers so far in 2020, despite the coronavirus pandemic, but the dynamics have changed from last year’s numbers.
Darknet vendors surpassed $ 800 million in revenue despite Covid pandemic
According to the Chainalysis report, darknet marketplaces surpassed the threshold of $ 800 million in cryptocurrencies in 2019 revenue, its all-time high. The exact figures for 2020 will be released in the “Chainalysis 2021 Crypto Crime Report” in January 2021.
However, the research firm noted that the total number of purchases and customers dropped significantly, but those with higher values boosted the rally highlighted in the survey. The most commonly used cryptocurrencies in the transactions are bitcoin (BTC), bitcoin cash (bch), litecoin (LTC), and necklace (USDT).
Also, the number of active markets worldwide has declined in the aftermath of the Covid-19 crisis. Chainalysis explains that the pandemic could be the main reason for such a dynamic in this year’s trend in the darknet markets, but according to experts consulted for the study, there are other reasons as well:
It seems that the ever-increasing competition coupled with law enforcement efforts is causing the darknet market ecosystem to consolidate into a few major players – a pattern common to the technology industry and other markets, both legal and illegal. .
Dynamics in Bitcoin prices
Chainalysis found that market activity on the darknet seemed “insensitive” to bitcoin market activity up to this point in the study. They further explained on the matter:
Fluctuations in the value of Bitcoin, which have always been common, have rarely been found to play a role in consumer buying activity in the darknet market. However, when the price of Bitcoin started to decline in mid-March after the first round of US lockdowns, so did the darknet market activity.
But according to the research firm, people should expect such a change to turn out to be only temporary.
Some vendors who spoke to Chainalysis before the study blamed the pandemic for affecting their operations. An example is the increasing number of customer complaints due to delays in deliveries, and similar situations forced some marketplaces to close temporarily.
Is this the beginning of the new normal in the darknet marketplaces? Let us know in the comments below.
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