Markets
Here’s Why This $3 Billion Cryptocurrency Could Reach a $15 Billion Market Cap
THE cryptocurrency market it is full of opportunities and value asymmetries that careful observers can take advantage of. On this aspect, market capitalization is a powerful benchmark for drawing comparisons between competing projects for a fundamental analysis.
In particular, the currently $3 billion Monero (XMR) stands out for its strong fundamentals, which suggests an undervalued market cap. Monero is one of the solid contenders that is gradually conquering part of Bitcoin (BTC) market share between cryptocurrencies.
The project has most of the praised strengths of Bitcoin and benefit from more efficient transactionsan improvement ASIC centralization-resistant proof-of-work systemand a field-tested default privacy network.
As of this writing, Monero is trading at $165.38 with a market cap of $3.09 billion, ranking 28th. A move to $15 billion would effectively increase its price fivefold to $826, reaching new highs. Interestingly, this move would only require exactly 1% of Bitcoin’s $1.20 trillion market cap.
Monero (XMR) all-time price chart. Source: Finbold
Privacy leader and adopted cypherpunk cryptocurrency
The cryptocurrency has a battle-tested default privacy solution for peer-to-peer money transfer, often praised by grassroots communities and old Bitcoin supporters.
For example, in September 2020, the U.S. Internal Revenue Service’s Criminal Investigation Division (IRS-CI) posted a $625,000 bounty for contractors who could develop tools to help track Monero. This bounty was never claimed, suggesting that such a tool does not exist.
Recently, Peter Thiel, a long-time Bitcoin supporter, billionaire and co-founder of PayPal, questioned the current state of BTC based on the fundamental view that interested him. Thiel mentioned cypherpunk, crypto-anarchist, libertarian, and “anti-centralized government” ideals as the core of Bitcoin’s value proposition.
“It does [BTC] Does it really work that way? Or has that thread somehow gotten lost? So when people at the FBI tell me that they would much rather criminals use Bitcoin than hundred-dollar bills, that suggests that, perhaps, it doesn’t work exactly as it should. I have a double reason. One is this kind of ideological, decentralized future of the computing world that I really believe in. I really think it would be better, and [Bitcoin] It seemed like the perfect vehicle for all of this for so long, and I’m just a lot less convinced of it.”
Peter Thiel
In contrast, Monero has captured this original vision, as well as markets previously dominated by BTC. Darknet markets are a clear example of adoption and use case, but also the share of opinions of cypherpunk influencers and commentators. Additionally, XMR has increased its share of use and dominance in Clearnet markets, such as cryptocurrency gift card providers.
War on Monero’s Privacy and Resilience
In particular, major governments around the world have declared war on financial privacy and, more specifically, Monero through arbitrary law enforcement.
In particular, the The European Union has banned anonymous paymentsIn the meantime, the The United States and the Netherlands have led the fight against against open source developers, raising concerns even from well-known critics of cryptocurrencies.
This scenario has significantly strengthened Monero, attracting more supporters to the cause and increasing awareness. Suddenly, XMR has become the first and second favorite cryptocurrency for many enthusiasts, increasing its potential.
Despite being removed from the list of majors cryptocurrency exchanges Pleases Binance and OKXXMR trading increased decentralized exchanges like Haveno. Buyers Reportedly Paid a Premium to Acquire Monero in These “Street” Marketshighlighting the demand for the currency.
In conclusion, XMR has a bright future ahead of it within the cypherpunk community and other cryptocurrency grassroots communities that once supported Bitcoin.
In a positive scenario for adoption and increased demand, Monero’s price could rise dramatically in view of the $15 billion market cap, potentially ranking among the most valuable cryptocurrencies. However, XMR must overcome significant challenges for this hypothetical rally, including in terms of liquidity and regulatory ghosts.
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