Monero’s monthly transaction rate is set to elevate probably between 550,000 to 650,000. The privacy coin covered 523,842 transactions last month.
Monero is a privacy-focused currency dating back to 2014 that rallied for the most of 2020 despite regulatory issues. At the time of writing, Monero is trading at around $146.07, which is up nearly 300% from last year.
Increased Demand For Monero
Monero boasts as a private, secure, and untraceable cryptocurrency. The protocol behind the cryptocurrency allows users to disguise their identity and hide amounts transferred by third parties other than those they specify.
In September 2020, they added the Concise Linkable Spontaneous Anonymous Group (CLSAG) transaction format; it reduced transaction sizes by 25% and review time by 20%.
Analysts point out that the increase in demand for Monero could be due to companies’ growing concern for its use in ransom payments for hackers.
Denis Vinokurov said that some companies have increased their bitcoin purchases to improve their ability to achieve portfolio diversification ambitions. Similarly, others have also stepped up efforts to acquire digital currencies such as XMR with existing payment options to hackers.
He added that while no Monero-based ransom was required during the hack at the US Treasury, these events caused more companies to worry about such hacks.
Globally, crypto exchanges have been delisting many privacy coins to remain compliant with AML/KYC requirements.
However, Justin Ehrenhofer, compliance analyst at the crypto market maker DV chain, said that XMR traders might have become more optimistic. As the digital currency continues to grow, Monero will reopen conversations at exchanges on how they could list privacy-focused coins again.
Monero In The Future
In a world where absolutely nothing offers real secrecy, there arises more reasons to have a private coin like Monero.
It has the potential to allow people to make transactions almost instantly, anywhere in the world, without needing government approval. In countries with oppressive governments, this can be a powerful tool in pursuing freedom.
However, criminals also appreciate Monero’s privacy features. The black market is open to everyone to sell a staggering array of drugs, weapons, and other criminal goods. Monero quickly found its place as the currency of choice on this illegal websites and transactions.
Besides, the privacy coin is also used by governments such as North Korea to circumvent international sanctions. For these two reasons, Monero will likely come under attack by a government less than excited about the idea of a completely private payment method. However, in the end, outlaws like drug dealers or illicit arsenal traders may leverage the platform for illegal undertakings.
How successful such a Monero crackdown will be, is an exciting test of the volatile property of cryptocurrency.