Monero is up 30% over the past week; what are the major factors behind its upsurge? 🚨 This article is 4 years old...
Monero is up 30% over the past week; what are the major factors behind its upsurge?
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Updated: Apr. 9, 2020 at 6:42 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Monero (XMR), the biggest privacy-focused cryptocurrency by valuation, increased from $44 to $58 in the past seven days by a staggering 30 percent.
Behind its abrupt increase in price are an all-time high hashrate, Coinbase CEO Brian Armstrong’s optimism towards anonymous cryptocurrencies, and Monero’s strong technology that allows for real anonymity.
Fundamentals are strengthening for Monero
In the past two years, Monero evolved into a top ten cryptocurrency, overtaking the likes of Cardano (ADA) and Stellar (XLM). It surpassed well funded privacy-focused projects with an active developer and user communities such as Zcash and Dash.
Monero remains as one of the only cryptocurrencies to provide full anonymity that blockchain analytics firms cannot trace. Companies like Chainalysis have been developing technologies to target Monero, but have been unsuccessful to date.
Kimberly Grauer at Chainalysis said in a seminar in January 2019 that Monero remains the team’s top priority for the years ahead.
21/ "@monero is our top priority"
— nopara73 (@nopara73) January 31, 2019
Unlike competing private cryptocurrencies such as Zcash, Monero does not provide an alternative way to process non-private transactions. All payments on the network are anonymous and fully encrypted.
The robust technology and anonymity of Monero put together with rising hashrate and user activity have positioned Monero for further growth.
In an official Coinbase blog post, Armstrong, who leads the largest cryptocurrency exchange in the U.S., said that a blockchain network with privacy features will go mainstream this decade.
Why XMR has the best chance for success
As said by Europol strategic analyst Jerek Jakubcek in a webinar, Monero transactions are untraceable. It remains as the only cryptocurrency that both the authorities and blockchain analytics companies consistently describe as untraceable.
Whether complete anonymity will be the driving factor of its success or downfall remains to be seen. There was significant optimism towards Zcash at the time of the launch because it allowed users and exchanges to choose between private and non-private transactions, but the gap between the valuation of Monero and Zcash demonstrates that the market prefers Monero over other top private cryptocurrencies.
Complete anonymity means that XMR gives users what no other cryptocurrency in the global market can really provide. It also means that it faces pressure from the authorities, as seen in the delisting of XMR by cryptocurrency exchanges in Japan.
Based on the price trend of XMR to date, the market indicates that investors perceive Monero as the top privacy-focused cryptocurrency in the global market.
In terms of short-term price, $65 has historically served as a heavy resistance level for XMR and as such, despite its recent breakout above the $55 resistance area, it has strong resistance levels to claim before eyeing an extended upside movement.
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