Tornado Cash continues to maintain its position as the largest cryptocurrency mixer on Ethereum, despite experiencing a significant decline in trading volume due to sanctions imposed by the United States on both the platform and its executives.
Blockchain analysis firm Arkham Intelligence said that Tornado Cash has recovered more than a year after the U.S. government imposed sanctions on the platform and arrested several key figures behind the business.
“Tornado Cash is still the largest crypto mixer on Ethereum, even after the August 2022 U.S. Treasury sanctions,” Arkham shared, adding, “$77.35M in assets flowed through its contracts on ETH Mainnet in the past 30 days.”
Tornado Cash is still the largest crypto mixer on Ethereum, even after the August 2022 US Treasury sanctions.
$77.35M in assets flowed through its contracts on ETH Mainnet in the past 30 days. pic.twitter.com/dBpxmN1gqb
— Arkham (@ArkhamIntel) October 9, 2023
Arkham also reported that the most mixed asset on Tornado Cash is the native Ethereum, which during its peak in July 2021, held more than $700 million ETH.
While the blockchain firm underlined that Tornado Cash’s assets plummeted by less than 60% following the U.S. sanctions along with its total value locked (TVL), its TVL eventually recovered and currently stands at approximately 118.3 ETH or around $187.9 million, based on the current market valuation.
“Tornado’s assets dropped by >60% after it was sanctioned by the U.S. Treasury, and transfer volume fell dramatically. But TVL and transfer volume later recovered somewhat, despite the arrest of 2/3 of Tornado’s founders. Tornado TVL currently stands at ~118.3K ETH ($187.9M),” Arkham stated.
Arkham’s analysis surfaced after blockchain intelligence company TRM Labs published its report, saying, “Tornado Cash volume dramatically reduced post-sanctions, but illicit actors are still using the mixer.”
TRM said Tornado Cash saw a nearly 85% drop in the overall volume passing through its platform, with its TVL between February to July 2022 (pre-sanction), amounting to around $2 billion significantly dropping to just $425 million in the same period this year (post-U.S. sanction).
“Specifically, overall volume passing through Tornado Cash has decreased by close to 85% post-sanctions. In the six-month period prior to sanctions (February to July 2022), the total volume into Tornado Cash was over $2.8 bn. In the same period one year later (February to July 2023), the total volume of Tornado Cash dropped to $425M. In addition, while we still see illicit activity passing through Tornado Cash, total illicit volume passing through the mixer has decreased by around 77% post-sanctions,” TRM said in its report.
