Total Value of Bitcoin Sent to Darknet Markets Increased by 70% in 2018: Report

Published on by Cointele | Published on

During last year the value of Bitcoin sent to darknet markets increased by 70 percent, according to a Chainalysis report published on Jan. 18.

According to the data contained in the report, in 2018 the relationship between the value of darknet market transactions and Bitcoin's market performance was inverse.

Over the course of 2018, the total value sent to darknet markets saw a notable 70 percent increase, while total Bitcoin economic transaction value dropped throughout the year.

Value of BTC Sent to darknet markets and BTC Market Performance.

According to Chainalysis data, the total dollar value of darknet market transactions has been steadily rising since 2011.

According to the report, the decrease in value from 2017 to 2018 is attributable to the closure of popular darknet market Alphabay in mid-2017, which reportedly saw darknet market activity fall by 60 percent.

Value of BTC in USD & share of BTC economic value sent to darknet markets.

After Alphabay's closure, various other markets reportedly have taken its place, creating what the report dubs is "The whack-a-mole problem with darknet markets." This lead to another phase of steady increase in the value of such transactions in 2018.

Still, according to Chainalysis data, even in 2017, the portion of Bitcoin commercial transactions sent to darknet markets was just a fraction of one percent, after having peaked in 2012 at over 6 percent.

Since its peak in 2012, the share of Bitcoin transactions sent to darknet markets has been mostly steadily decreasing.

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