Monero is becoming the preferred cryptocurrency in darknet markets, driven by law enforcement's focus on Bitcoin and regulatory pressures.
TRM Labs reports a rising trend in darknet marketplaces favoring Monero, a cryptocurrency known for its privacy features. Nearly 50% of newly launched platforms in 2025 are exclusively using Monero, attributed to law enforcement's enhanced ability to trace transactions made with Bitcoin and stablecoins.
High-profile criminal activities further spurred Monero's popularity. A January incident involving the theft of over $200 million led to a surge in demand for XMR, pushing its price up by 60% in just four days, achieving a new all-time high. Despite a price correction, Monero's value has increased by 51% over the past year, significantly outpacing Bitcoin and Ethereum.
This growth occurred alongside a wave of delistings on centralized exchanges, with major platforms like Binance pulling XMR trading pairs. As a result, trading has migrated to decentralized platforms where regulations are looser.
Technological Developments
Monero currently utilizes ring signatures to obfuscate transactions, though this method is not foolproof against blockchain analysis. Experts warn that even with the privacy measures, law enforcement can still use metadata to deanonymize users. However, developers are implementing an upgrade that will enhance privacy measures by increasing the number of potential senders from 16 to millions, making it harder to trace the origin of transactions.
Debate on Privacy and Crime
The surge in criminal interest in Monero is viewed by supporters as an endorsement of its effectiveness as a privacy tool. Douglas Tuman, from the marketplace XmrBazaar, notes that criminals prefer XMR for its "untraceable digital cash" capabilities. Meanwhile, Monero developers, like Luke Parker, stress their commitment to privacy rights free from governmental oversight. At TRM Labs, there is an acknowledgment of the delicate balance between protecting privacy for legitimate users and preventing misuse by criminals.
In October 2025, Monero developers also released the Flourine Fermi client, enhancing its defenses against surveillance nodes, reflecting ongoing efforts to maintain user privacy in an increasingly scrutinized environment.
