A May 19 Crystal Blockchain Analytics study shows that the total dollar value of Bitcoins transferred on the dark web increased by 65% in Q1 2020, despite a decline in transactions over the same period in 2019.
According to the report, the total value of Bitcoin (BTC) traded represented a 340 percent growth in three years. The analysis team claims that such figures could be explained by the massive adoption of cryptomonkets, attributing it to their „ease of use and popularity“ among users and entities of the darknet.
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The technology company Bitcoin also revealed that the total amount received by the darknet sites decreased from 64,000 BTC in Q1 2019 to 47,000 BTC in Q1 2020, while the total amount sent by those sites showed a drop from 64,000 BTC in Q1 2019 to 50,000 BTC in Q1 2020.
However, the figures show that, in terms of dollar amounts, players on the darknet received and sent a greater amount of money, from $384 million in the first quarter of 2019 to $411 million in the first quarter of 2020. Bitcoin was worth $3,533 in Q1 2019, while in Q1 2020 it was trading at $7,500 on average.
Popularity of alternative currencies grows through transactions on the dark web
The report attributes the reduction in the amount of Bitcoin largely to the fact that the use of altcoins on the dark web has been growing in recent years. However, Crystal Blockchain Analytics also mentions other factors, such as increasing market capitalization and the „mass adoption“ of Bitcoin.
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Another of the study’s conclusions was that the number of Bitcoin Future Review / Bitcoin Formula Review / Bitcoin Loophole Review / Crypto Investor Review / Bitcoin Code Review that dark-web players sent to exchanges requiring identity verification during the first quarter of 2020 decreased, favoring the use of more anonymous services such as mixers.
The report revealed that the amount of Bitcoin sent by darknet sites through such exchanges dropped „significantly“ from 14,073 BTC to 5,455 BTC.
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Crystal Blockchain Analytics provided the following input on the study:
„Also of concern is the fact that entities in the darknet continue to increase the amount of bitcoin (in actual bitcoin value and USD) sent to each other. These statistics indicate that bitcoin continues to be a financial tool for these entities.
The analyst company also notes that, although darket users and sites are trying to hide their transactions by mixing services for the removal of crypto currencies, these activities are „easy“ to monitor and identify. They also commented on the following:
„As a result, the impact of the strong regulations enacted by the FATF and the European Union to combat these illicit activities is already evident. We expect to see even more significant changes in these guidelines over the course of 2020 as a result of these efforts.
Cointelegraph contacted the Crystal Blockchain Analytics team for more details. This article will be updated accordingly if a response is received.