A study by Crystal Blockchain Analytics has said that the total USD value of Bitcoins transferred on the dark web rose by 65% in Q1 2020, even with a decline in transactions during the same period in 2019.
On May 19, it has been reported the total value of Bitcoin (BTC) transacted represented a 340% growth over three years, as the analytics team stated that such figures could find an explanation in the mass adoption of the cryptocurrency by attributing it to its “ease of use and popularity” among darknet users and entities.
However, the Bitcoin technology firm also revealed that the total amount received by darknet sites decreased from 64,000 BTC in Q1 2019 to 47,000 BTC in Q1 2020, while the total amount sent by such dark web sites showed a fall from 64,000 BTC in Q1 2019 to 50,000 BTC in Q1 2020.
The figures show that in terms of the amounts in USD, dark-net actors received and sent an increased amount of money, from $384 million in Q1 2019 to $411 million in Q1 2020. Bitcoin was worth $3,533 in Q1 2019, while in Q1 2020 it was quoting at $7,500 on average.
Crystal Blockchain Analytics claims that altcoin popularity is rising on the dark web, but BTC remains king https://t.co/trLGhpQVzK — Cointelegraph (@Cointelegraph) May 19, 2020
It has been analyzed that the report assigned the reduced amount of Bitcoin in large part to the fact that altcoin usage on the dark web has been growing over the last few years.
Also, Crystal Blockchain Analytics mentioned other factors, such as the growing market capitalization and “mass adoption” of Bitcoin.
Another finding was that the number of Bitcoin, which dark-web actors sent to exchanges that require ID verification during Q1 2020 dropped, favoring the use of more anonymizing services like mixers.
Likewise, 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.
Crystal Blockchain Analytics added:
“Also worrying is the fact that darknet entities continue to increase the amount of bitcoin (in actual bitcoin and USD value) sent amongst themselves. These statistics indicate that bitcoin continues to be a financial tool for darknet entities.”
Also, the analytics firm highlighted that though dark web users and sites are trying to hide their transactions through mixing services for withdrawal of cryptos, these activities are “easy” to monitor and identify.
They also commented:
“As a result, the impact of the strong regulations enacted by the FATF and the European Union to fight these illicit activities is already apparent. We expect to see even more significant changes in these patterns throughout 2020 as a result of these efforts.”
Thus, the use of altcoins for illegal activities continues to make headlines in the crypto sphere, as revealed by the study.