Chainalysis: Early Drug Signal in Crypto Darknet

According to Chainalysis's new report, blockchain transaction data linked to cryptocurrency payments can provide early signals for emerging drug crises. The study examining illegal market activities in darknet drug and fraud markets revealed that crypto flows linked to darknet markets reached approximately $2.6 billion in 2025. These markets continue to operate on a large scale despite law enforcement operations. Sellers usually receive payments from personal wallets and centralized exchanges.

Darknet market flows. Source: Chainalysis

Chainalysis Report: Blockchain Early Warning Mechanism

The report emphasizes the power of blockchain analysis in predicting health crises. Crypto payments for fentanyl precursor chemicals showed a sharp decline from mid-2023; a few months later, overdose deaths in the US and Canada peaked and then decreased. This proves that transaction data signaled 3-6 months before official statistics. Technically, address clustering and flow tracking algorithms (graph analysis) provide early warnings by tracing precursor supply chains.

Darknet Drug Flows: 2025 Data

In 2025, $2.6 billion in crypto inflows to the darknet highlight the dominance of Bitcoin and stablecoins. Compared to Canadian hospital records, payments under $500 were unrelated to emergency room visits or deaths, while large transfers were linked to increases in hospitalizations and deaths related to stimulants. This reveals that transaction size is a risk indicator.

Crypto transactions provide an early signal of emerging drug crises. Source: Chainalysis

Abacus Closure and Darknet Migration

Following the closure of Abacus Market in July 2025, activity shifted to platforms like TorZon. On-chain volumes in fraud markets dropped from $205 million to $87.5 million annually, but shifted to Telegram-based wholesale operations. This shift shows reduced on-chain visibility but increased covert channels.

Illegal Human Trafficking: Crypto Increase 85%

Suspicious human trafficking networks saw crypto transactions increase by 85% in 2025, reaching hundreds of millions of dollars. Blockchain forensics tools can track these networks through multi-hop mixers, but privacy-focused protocols pose challenges.

ALT Price and Regulatory Pressure Effect

This report boosts demand for blockchain analytics, highlighting projects like ALT detailed analysis. ALT (AltLayer) is currently at $0.01, down -8.52% in 24h. RSI 33.83 (oversold), downtrend continues. Supports are strong:

Resistances: R1 $0.0082 (+4.59%). Supertrend bearish, below EMA20 $0.0090. Post-report regulatory fears are pressuring ALT, ALT futures could increase volatility. TON also plays a role in similar flows.

Future of Blockchain Analytics and ALT Integration

Tools like Chainalysis, if integrated with Layer-2 solutions (like ALT), can track illicit flows more effectively. For investors, cross-checking with TON analysis is recommended.