Underground digital marketplaces are said to be making a comeback, utilizing Bitcoin as their primary currency.
In the cryptocurrency world, Monero (XMR) has been making waves, with its on-chain volume peaking in April 2024 due to the "Black Marble" attack, an attempt to de-anonymize Monero through a transaction flood. However, the extent to which darknet markets are moving away from Monero is uncertain.
Despite the peak, statistics from BitInfoCharts show a consistently steady, albeit gentle, increase in volume over the long term. This suggests that if Monero is used less as a means of payment, speculation may be on the rise.
The price of Monero has seen a significant increase over the past 12 months, with the price rising from $123 to $216. In Bitcoin terms, Monero has also seen an increase, moving from 0.0017 BTC to 0.0025 BTC.
The trading volume of Monero, despite a lower number of exchanges, is significantly increasing over the last three years. Major exchanges such as Binance, Kraken, and OKX have removed Monero from trading, either completely or for certain jurisdictions, while others like Bitcoin.de and Coinbase never listed it due to regulatory concerns.
However, the darknet markets are reportedly returning to using Bitcoin after having either completely switched to or accepted Monero. Eric Jardine, a cybercrime researcher at Chainalysis, has stated in an interview with Coindesk that this shift is due to Bitcoin's widespread adoption and ease of use, despite its lower privacy compared to Monero.
Important darknet marketplaces like "Nucleus" have reverted to using Bitcoin as a payment method after the decline in Monero usage. Several darknet vendors and illegal trade platforms, including some previously using Monero, continue to accept Bitcoin.
The high degree of anonymity offered by Monero, thanks to ring signatures, zero-knowledge proofs, and other technologies, makes it a popular choice for anonymous markets. However, this anonymity poses problems for analysts, making it difficult to track the flow of funds.
It's worth noting that exchanging Monero against gift cards on various platforms is a popular method to "cash out" Monero without going through the exchanges. The Monero community is relying on atomic swaps to exchange Bitcoin for Monero without an intermediary.
While the thesis that the darknet markets are moving away from Monero logically makes sense, its accuracy is uncertain. Some argue that Chainalysis, a cybercrime researcher, may have a bias towards Monero declining, as it poses problems for the analyst and could benefit its position with its clients, typically authorities and exchanges.
In conclusion, Monero continues to hold its ground as the cryptocurrency offering the highest degree of anonymity, despite the challenges it presents to analysts and the shifting trends in the darknet markets. The future of Monero remains uncertain, but its resilience and unique features ensure it will continue to be a topic of interest in the cryptocurrency world.
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