Global Crypto Mixers Usage Declined by 32.2% (yoy) In 2022

Bankless Times | Elizabeth Kerr | Feb 1, 2023

There has been a 32.2% decline in the usage of crypto mixers in 2022

• Cryptocurrency mixers mix users’ coins with others from a large pool. Therefore, making it difficult to trace the source of the funds. As a result, mixers are popular among privacy-conscious investors and criminals.
  • Crypto mixers provide users with a way to anonymize their cryptocurrency transactions. In addition, they allow for funds to be shuffled among multiple addresses, making it harder for third parties or authorities to track the origin of the funds.

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• Reasons for decline:
  • One possible explanation for the decline is the increase in regulatory scrutiny. Governments worldwide are taking a closer look at the world of cryptocurrency. As a result, many users may be wary of using tools that could attract unwanted attention.
  • Also, the rise of new privacy-focused coins is drawing users away from the mixers.
  • Another factor could be the growth of decentralized finance (DeFi) platforms. These platforms offer similar privacy features without the need for a mixer. DeFi’s popularity could be drawing users away from traditional mixers.
  • Responsible users have reduced the usage of crypto mixers due to sanctions by authorities.
  • Authorities have sanctioned leading Mixer companies, e.g. Tornado cash and Blender.io. However, criminals are still utilizing them.

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