CipherTrace report shows a decline in illicit activity in the crypto ecosystem
Amid the extreme market conditions, a June 13 report by CipherTrace details positive developments in the crypto ecosystem, suggesting a decline in crypto-related crimes. The report showed increased crypto trade volumes from $4.3 trillion in 2020 to $16 trillion in 2021. The firm claims that this exponential growth is why regulators are looking into the crypto ecosystem. According to CipherTrace, illicit activities have declined and now constitute a small fraction of the entire crypto ecosystem. The firm estimates that illicit activity, which constituted 0.62% and 0.65% of overall cryptocurrency activities in 2020, has dropped to between 0.10 in 2021. CipherTrace estimates that hackers netted $2.4 billion on an analysis of the top ten DeFi hacks in 2021 and Q1 2022. The March 2022 Ronin Network exploit and the 2021 Poly Network hack constitute nearly half of the overall figure. While this sum is significant, the firm details that the rapidly expanding ecosystem makes it a small fraction of the overall market value.