A New Record: Darknet Markets Generated over 1.7B Dollar in Crypto Revenue in 2020, Recent Chainlysis Data Shows
February 5, 2021 3:36 AM
In a year despite the decline in individual purchases from darknet, revenues hit an all-time high with a record $1.7B Generated in 2020.
Chainalysis a Blockchain analytics firm sighted a singular driver behind the new record witnessed last year. According to the Chainalysis 2021 Crypto Crime Report, darknet markets brought in a total of $1.7 billion worth of cryptocurrencies in 2020.
However, the report revealed that Hydra Market, one of the largest illegal marketplaces on the darkweb boosted the total revenues, Chainalysis reported that without Hydra’s figures, darknet market revenue should have stayed flat from 2019 to 2020.
The Hydra Market is a one-of-its-kind darknet marketplace which only serves Russian-speaking countries. The research showed that Hydra could be considered the largest darknet market globally, accounting for over 75% of the 2020 revenue. According to the analytics firm, such a marketplace is a big driver of Eastern Europe’s unique crypto crime terrain.
Hydra dominance of the darknet market is a clear reason why they have been high rates of illegal crypto transactions, according to Chainlysis. With unique sophisticated operations that Hydra Market is running, such as anonymous Courier package delivery proving to be a concern for authorities.
According to a crypto forensic analysis carried out by Chainalysis, Europe (Western, Northern, and Southern) and North America are the largest consumers of darknet market. Most cryptos are being laundered by the criminals using over-the-counter (OTC) exchanges based in China or Eastern Europe, the research asserts.
They also added:
In terms of transaction value in and Out from the darknet markets is largely dominated by U.S, Russia, Ukraine and China while Vietnam and Venezuela are also not far off