Although active participants in Darknet market decreased in 2020, the revenue of this market reached its all-time-high of $1.5 billion. The Chainalysis believes that this increment caused by COVID-19 pandemic. In fact, the latest statistics from cryptocurrency market show that crypto payment on Darknet markets reached ATH.
A comparison between 2020 and 2019
Chainalysis made an annual report in order to compare the years 2020 and 2019. In this report, they announced that COVID-19 pandemic affected the Darknet market activities. In fact, the report shows that the total revenue of Darknet market in 2020 is significantly greater than 2019. However, it experienced a dramatic drop in March and April.
Previously the Darknet activities did not get affected by BTC price movements and it decreased when most cryptocurrencies lost over 70% of value during the crisis due to COVID-19. However, those changes were not permanent. After a while, the revenue started to grow up rapidly from May and broke the short-term correlation within the price.
Finally, this year the total revenue increased and reached its all-time-high of over $1.5 billion. This data doesn’t include December 2020. In the report, Chainalysis considered transfers, which performed using Bitcoin Cash, Bitcoin, Tether, and Litecoin.
Darknet transfers experienced reduction
It stated in the report that the number of purchases and individual customers declined. However, the total revenue increased significantly.
The latest statistics show that the number of transfers dropped to 9 million in the year 2020, while, this number was above 12 million in the year 2019. It means that the customers spent large amounts of money for their purchases.
Crypto Payment On Darknet Markets Reached ATH; What does it mean?
The data shows that the casual buyers or those, who buy illegals for their personal use are leaving the Darknet markets. On the other hand, those buying in large amounts in order to sell to others or perhaps use it for their personal use keep purchasing more. Meanwhile, it could mean that casual buyers are feeling somehow uncertainly. As a result, those buying in large amounts place larger orders in the market.