Cryptocurrency Crime Value reaches All Time High in 2021 but is only a fraction (0.15%) of Total Traded Volume.
“The blockchain analysis firm Chainalysis in its report has revealed that the total cryptocurrency value received by illicit addresses grew to a new all-time high in 2021 with a value of $14 Billion. Though it seems that the crime rate in crypto has risen, on the contrary it has fallen as it is only 0.15% of the total crypto trading volume.”
Chainalysis, a blockchain crypto analysis firm in its report has revealed that the cryptocurrency value received by illicit addresses grew to a new all-time high in 2021 with a value of $14 Billion which is almost twice of $7.8 Billion in 2020. Though the data might be interpreted as an indication of the rise in the crypto crime but on the contrary it is the exact opposite. This value of cryptocurrency crime is only 0.15% of the actual crypto trading volume which is the all time lowest.
The total crypto trading volume in 2021 was approx. $15.8 Trillion, a massive 689% rise from $1.8 Trillion in 2020. Thus, this data is not an indicator of the increased crime rate in the crypto industry, rather it is a strong indicator of an extensive growth in the crypto market over a period of 1 year. The growth is the resultant of mass adoption of the crypto sphere around the world.
The crime rate is falling in the crypto sphere as more institutional adoption is on the rise and regulations over the horizon. The crime rate value was 0.15% in 2021 against 0.62% in 2020 against 3.37% in 2019, the firm revealed.
Disclaimer: The article is meant for the educational purpose only and in no way it should be considered as financial advice. Own research on the topic is advisable.
Photo by geralt on Pixabay