Monero hits its 2022 high
Cryptocurrencies with high levels of anonymity have enjoyed positive growth this year thanks to their ability to conceal both the parties to a transfer and the transaction amount. As a result, Monero has virtually doubled in price from its February lows to reach a new 2022 high.
Monero uses ring signatures. That means a transaction carried out by one member of a given group can be signed off on by any party to it. Because of its constant mixing, it is impossible to say for sure who has signed off on the transaction or who has sent the funds and to whom.
Due to the fact that it is impossible to trace the movement of funds, pressure from financial regulators saw several cryptocurrency exchanges delist Monero and other anonymous coins in 2020. However, this has not done much to reduce the popularity and value of Monero.
Over the last two years, the number of transactions on the network has risen by 10,000 a day to 40,000, and the total number of completed transactions has now reached 15 billion.
Another factor buoying prices is the steady decline in emission, which has dropped from 1.38 XMR per block in 2020 to 0.69 XMR today. This is close to the tail emission (minimum mining reward) of 0.6 XMR.
Over the previous weekend, the community reached a consensus on the 16 July hard fork. It was thus decided that the number of rings will increase from 11 to 16, which will also increase the level of anonymity. The reaching of a consensus is a key step in modernising any network since this allows it to develop without breaks in the blockchain (as is the case with BTC and BCH, ETH and ETC).
Rising geopolitical tensions and excess pressure from oversight bodies have driven demand for anonymous coins. It is likely that Monero will continue its bullish run this year despite the general crypto market correction.
StotmGain analytical group
(cryptocurrency trading, exchange and storage platform)