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Monero (XMR) just hit a price point it has not seen since mid-2021, passing $346 earlier today. This move has the privacy-focused cryptocurrency up more than 150% year-over-year, making it one of the stronger performers among mid-cap digital assets this cycle.
XMR has not quite hit its all-time high of $517 yet, but it is getting close. Over the past few months, the price has been going up, gaining almost 25% in May alone.
From a technical standpoint, the price action has been favorable, with weekly candles closing strong and hitting consistent higher highs. But this rally is not just fueled by chart patterns.
What's behind Monero's (XMR) price rise?
Researchers say part of that growth is due to a shift in the U.S. regulatory tone. The FIT21 crypto bill is picking up steam, and the SEC is taking a step back from labeling privacy coins as securities. This seems to be helping the market out a bit. It looks like the easing of pressure has led to more money flowing back into assets like Monero — ones that had been in regulatory limbo.
There is also a lot of excitement about Monero's upcoming FCMP++ upgrade, which is expected later this year. It is a privacy update, but a forward-looking one. It is designed to improve quantum resistance and keep older transactions protected even if computing power takes a major leap. Basically, it is a smarter lock on Monero's already hidden ledger.
There are also rumors that major exchanges are thinking about relisting XMR, which, when combined with Monero's lower liquidity and more concentrated holdings, can lead to major price movements when money starts flowing in.
Some people have also mentioned a recent report of a suspected $330 million BTC theft, and it has been speculated that Monero might have been used to hide the trail. Whether that is true or not, it has likely added to the spike in attention.
Monero's market cap is now at $6.38 billion, with 18.44 million coins in circulation — and there is no cap, by design.
Vladislav Sopov
U.Today Editorial Team