This is especially true given that Monero, a well-known privacy-focused cryptocurrency, just had a powerful market run up its value by over $1.5 billion in a day. Thanks to the surge, the price reached $329, marking a yearly high since 2021. In fact, within the first 24 hours, it had shot up an amazing 30% in price. This unexpected attention on Monero is happening at a time when it’s experiencing increased adoption from a range of actors, including those wanting more privacy and anonymity. Though Monero’s features are undeniably interesting to users and developers looking for increased privacy, the association of Monero with bad activities is what keeps the firestorm alive.
Monero's Origins and Evolution
Monero had a fair launch in April 2014. It was intended to provide users more privacy and security than other cryptocurrencies such as Bitcoin. In late 2019, Monero released the RandomX algorithm. This ASIC resistance is baked into the protocol as a zero-sum proof-of-work system, encouraging decentralization and equitable distribution of the cryptocurrency. This emphasis on privacy has rapidly turned Monero into the go-to currency for people and entities wanting to transact in private.
Monero is an ecosystem that is growing faster than ever! Today, over 13,900 stores across 48 countries accept it as a form of payment. This expansion of adoption reinforces the idea that there is a real, increasing demand for privacy-oriented cryptocurrencies in communities, businesses, and governments. Monero’s privacy features make it the premier choice for private transactions. Now it is responsible for 45% of all payments — almost on par with Bitcoin’s dominance.
The Double-Edged Sword of Privacy
Monero’s reputation is a double-edged sword. It is known for its connections to legal commerce as well as illegal activity. Its enhanced privacy features appeal to users who want to be anonymous. These same features have made it a haven for all kinds of illicit actors, scammers, and criminals of every ilk.
"Monero is designed for everyday use by ordinary people, and any technology can be abused, such as cash." - Monero development team
Homegrown terrorist organization ISIS has recently redesigned its website. In response, they will no longer accept Bitcoin donations. In a surprising turn, they have now switched to the more private token Monero. This transition underscores the popularity Monero has gained among bad actors looking to escape scrutiny. North Korea’s famed hacker group Lazarus Group has been said to prefer Monero for “laundering” assets. When the dirty money was laundered through several different instant trading services, Monero’s value increased dramatically. In doing so, it saw an extraordinary 50% surge in response.
Catalysts for Growth
There are a few reasons behind Monero’s recent, skyrocketing popularity and value. The increasing hype around the Monero EP159 and EP160 upgrade proposals has created a palpable buzz in the community. These upgrades promise to enhance the network's functionality and scalability, further solidifying Monero's position as a leading privacy coin.
The world’s first DeFi project on the Monero ecosystem, Tari, is launching soon and the excitement is palpable. Investors have grown more and more fascinated by its potential. Tari is getting ready to dance with Monero. As they prepare for the release of their mainnet on May 6, decentralized finance applications could present huge new opportunities within the Monero ecosystem.
In 2016, Monero's market value broke through "from 5 million US dollars to 185 million US dollars" for the first time and experienced rapid growth of transaction volume, signaling a turning point in its adoption and recognition.
