Monero remains one of the strongest positions on the cryptocurrency market as it gains more than 70% since the end of February, ignoring almost every trend on the market and moving up despite the correction on such cryptocurrencies as Bitcoin and Ethereum, which was also highlighted by Bloomberg.
Hashrate on the rise
In addition to the strong rise of XMR as an investment asset, we also saw an increase in GH/s showing increased demand from miners. Since the beginning of the month, Monero saw several spikes in the hashrate, including a spike to 4 GH/s on March 29 and 3.77 GH/s on April 11.
In the long term, Monero saw a steady uptrend in the demand coming from miners as its hashrate was growing steadily from the middle of 2021 until January. In 2022, we see a steady decrease in the hashrate, which is most likely tied to the shift in mining power toward different coins that have faced a drop in the hashrate.
Why is demand for Monero at such a high level?
Both hashrate and market performance suggest that traders and investors are more than interested in purchasing as much Monero as they can. In addition to it, we can clearly see large outflows from major exchanges like Binance, which was the reason behind several reports on the inability of users to properly trade the cryptocurrency on the platform.
The main reason behind the increased demand is most likely tied to the demand for "privacy coins," or cryptocurrencies developed to provide the highest privacy possible, which is why they become extremely popular among criminal elements and people involved in illegal activities.
Alex Dovbnya
