Darknet Users Return to Bitcoin as Privacy Tokens Lose Support

The rise and fall of monero (XMR) as the darknet’s favored currency has taken another turn, with bitcoin (BTC) regaining its status as the primary medium of exchange for illicit goods and services. The shift comes amid growing global pressure on privacy coins and their removal from major crypto exchanges.

“Bitcoin is becoming the fallback option again,” said Eric Jardine, head of cybercrime research at Chainalysis. “Since monero’s delisting from top platforms like Binance, we’ve seen darknet activity gravitate back to BTC.”

For years, monero was praised on the darknet for its superior privacy protections. Many Western darknet marketplaces even phased out bitcoin in favor of monero, or required both. However, this reliance on XMR began to crumble after exchanges like OKX and Binance pulled support, citing regulatory concerns and compliance reviews.

As monero’s accessibility wanes, so too does its usage. According to BitInfoCharts, the number of daily transactions on the monero blockchain has dropped by 50% compared to last year.

Jardine explained that the liquidity and ease of use that bitcoin offers—even without strong privacy—are now more appealing to darknet users. “A functioning payment system on the darknet needs liquidity, access, and reliability. Bitcoin still delivers that.”

Despite the renewed attention on illicit crypto use, Jardine emphasized that such transactions remain a very small fraction of the total market. “Less than 1% of all crypto transactions are tied to illicit activity,” he noted. “It’s important not to paint the entire space with a broad brush.”

Even stablecoins are being used more frequently in illicit transactions, particularly USDT. To combat this, the Tron-backed T3 Financial Crime Unit—comprising Tron, Tether, and TRM Labs—has frozen over $100 million in illicit funds so far this year.

Darknet crackdowns remain focused on markets dealing in fentanyl, which continues to be a top enforcement priority. Jardine said enforcement agencies track darknet vendors based on their involvement in narcotics—especially fentanyl and its precursors.

The U.S. government’s recent takedown of Nemesis Market is a clear example. Its operator, Behrouz Parsarad, was sanctioned by OFAC, which also blacklisted 44 BTC wallets and 5 XMR addresses connected to the platform.