The activity of Tonado Cash, the leading Ethereum mixer, has surged in the past six months! DeFi bull market precursor?

This site (120btC.coM): Tornado Cash, the leading Ethereum currency mixer protocol, has been used by many hacker groups to conduct illegal money laundering due to its privacy and anonymous transaction characteristics, and has been targeted by the US authorities. In August 2022, the Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury announced sanctions against Tornado Cash and ordered the freezing of related assets, setting off a fierce controversy over open source and supervision.

USD 1.9 billion in deposits have been received in the first half of the year, more than in the whole of 2023

After encountering sanctions, Tornado Cash’s deposit volume has been in the doldrums throughout 2023. However, according to data from Flipside Crypto, Tornado Cash has received approximately $1.9 billion in deposits in the first six months of this year, an increase of 50% over the total deposits for the entire year of 2023.

Tornado Cash deposit/withdrawal volume

A precursor to the DeFi bull market?

Readers should be reminded that the original intention of Tornado Cash is to ensure the privacy of transactions on the chain. Some people do not want their transaction records to be tracked. For example, there are many projects that specifically track the movements of whale wallets. They hope to know how to be smart. money, so they want to protect their privacy.

On the other hand, if you are in an oppressed country, having untraceable cash flow is also an important tool to resist the authoritarian government. For example, Ethereum co-founder Vitalik Buterin has publicly stated that he uses Tornado Cash , for the purpose of anonymously donating money to war-torn Ukraine.

Although Tornado Cash is currently labeled as an illegal money laundering tool, the amount of deposits has shown alarming growth in the first half of 2024, which may mean that the demand for on-chain transactions is gradually increasing. It may be that the whales do not want to disclose large amounts Trading is preparing the market for the next step.

Therefore, the increase in Tornado Cash deposits may be regarded as a signal of the recovery of "on-chain activities", which will usher in the DeFi bull market.

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