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Reading: Chainalysis Reports Highlights Illicit Activities on the Darknet Market
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Investor's Crypto Daily > Blog > Headlines > Cryptocurrency News > Chainalysis Reports Highlights Illicit Activities on the Darknet Market
Cryptocurrency News

Chainalysis Reports Highlights Illicit Activities on the Darknet Market

Last updated: February 20, 2026 7:19 pm
By Ronald Dupree 3 Min Read
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  • Darknet Market remains resilient, according Chainalysis 2025 report.

  • The report indicates that on-chain fentanyl flow declined sharply by 2025.

  • Chainalysis Report highlights the importance of blockchain technology for mainstream operations

The Chainalysis 2026 report on crypto-crime reveals a resilient darknet activity, highlighting the persistence of the drug market enabled by cryptography, despite repeated enforcement measures.

Contents
Darknet Market Flows Continue to RiseThe bad actors always try to beat the system

Darknet Market Flows Continue to Rise

Details of the report reveal that darknet market flow reached nearly $2.6 billion by 2025. This represents a continuous increase in volume since 2022.

Despite the increase in the volume of darknet transactions, the on-chain fentanyl flows have experienced a sharp drop. Chainalysis reports that deaths from fentanyl in the US have dropped dramatically since 2023. The drop is due to improved collaboration between China and the US, which led China to take direct action against online fentanyl-precursor vendors, disrupting the supply at the source.

Related:U.S. DOJ has finalized the forfeiture of over $400 million linked to Helix Darknet mixer

The alignment between the on-chain data, and the decline in opioid deaths, highlights once again the importance of blockchain technology in mainstream sectors as a tool to measure strategic and operational impact. This confirms that blockchain solutions can be a vital tool in the healthcare sector.

Blockchain is the technology that supports cryptocurrency infrastructure. Darknet markets, which are mainly powered through crypto transactions, operate on top of global blockchain networks. In the current dispensation, the government’s most important move could be to embrace blockchain tracking in order to curb illicit transactions.

The bad actors always try to beat the system

Chainalysis also reported a decline in fraud shop activities year-on-year, driven by an increase in the use of custodial services. Chinese-language fraud shops are consolidating into more profitable, wholesale-focused operations.


Chainalysis warns that despite the successes, especially in disrupting the fentanyl supplies, a setback is possible as long as there is a persistent demand for synthetic drugs, which remain a profitable alternative to agriculturally grown substances like heroin. The blockchain investigation platform revealed that trafficking organizations could adapt to supply shocks by finding ways to work around system.

Related : India Targets Darknet Dram Trade with New Crypto Tracking Taskforce

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