Blockchain transaction data tied to cryptocurrency payments may provide an early signal of emerging drug crises, according to a new report from blockchain analytics firm Chainalysis.
The study examined illicit market activity across darknet drug networks and found that crypto flows to these markets reached nearly $2.6 billion in 2025, indicating that online drug markets remain operational despite law enforcement efforts to shut them down. Payments are typically made from personal wallets or centralized exchanges.
Beyond just tracking criminal activities, Chainalysis claims that this data can also reflect real-world health outcomes. For instance, the payments made to suppliers of fentanyl precursor chemicals saw a sharp drop starting in mid-2023, which coincided with a decrease in overdose fatalities across the United States and Canada after a peak in 2023.
According to the report, monitoring transactions linked to precursor suppliers could offer a warning of three to six months before overdose trends manifest in public health data.
Darknet market flows. Source: Chainalysis
Crypto Drug Purchases and Increased Hospitalizations
The analysis highlighted that smaller transactions of less than $500 showed no significant correlation with emergency visits or fatalities, whereas larger transactions were linked to a rise in stimulant-related hospitalizations and deaths, suggesting these transactions likely indicate bulk purchasing rather than personal use.
“Money moves before the crisis hits. People buy drugs before they redistribute them, and users consume them before they overdose and require medical care,” the report stated, emphasizing that blockchain records, which update in real-time, can serve as a robust early warning system.
Crypto transactions provide an early signal of emerging drug crises. Source: Chainalysis
Following the closure of Abacus Market in July 2025, activity quickly shifted to new platforms such as TorZon. Vendors consistently reestablish their operations across various platforms, relocating as needed.
Decline in Fraud Shop Volumes
Fraud marketplaces exhibited a contrasting trend. Onchain volumes plummeted from approximately $205 million to $87.5 million year-over-year following infrastructure crackdown, although operations pivoted towards wholesale, particularly within Chinese-language networks on Telegram that handle substantial bulk sales of stolen payment data.
Chainalysis reported that crypto transactions linked to suspected human trafficking networks have surged by 85% in 2025, amounting to hundreds of millions of dollars, primarily concentrated in Southeast Asia and closely related to scams, online casinos, and Chinese money-laundering syndicates.
