Heres the reason why this 3 billion cryptocurrency could attain a 15 billion market capitalization
The cryptocurrency market is filled with opportunities and imbalances in value that astute observers can take advantage of. One important benchmark for conducting a fundamental analysis and comparing competing projects is market capitalization.
Monero (XMR), currently valued at $3 billion, stands out as a project with strong fundamentals and an undervalued capitalization. It is gradually gaining market share among cryptocurrencies and is considered a solid contender to Bitcoin (BTC).
Monero shares many of Bitcoin’s strengths and benefits from more efficient transactions, an improved proof-of-work system that resists centralization by ASICs, and a battle-tested privacy-by-default network.
At the time of writing, Monero is trading at $165.38 with a market cap of $3.09 billion, ranking 28th. If its market cap were to increase to $15 billion, its price would rise fivefold to $826, reaching new highs. Interestingly, achieving this increase would only require 1% of Bitcoin’s $1.20 trillion market capitalization.
Monero is a leading privacy-focused and cypherpunk cryptocurrency that has gained recognition for its privacy-by-default solution for peer-to-peer money transfers. It has been praised by grassroots communities and long-time Bitcoin supporters. In fact, the United States Internal Revenue Service’s criminal investigation division (IRS-CI) offered a $625,000 bounty for tools to trace Monero, suggesting that such tools do not currently exist.
Peter Thiel, a billionaire, old-time Bitcoin supporter, and co-founder of PayPal, recently questioned Bitcoin’s current state based on its foundational vision. He highlighted the importance of cypherpunk, crypto-anarchist, libertarian, and anti-centralized government ideals as the core value proposition of Bitcoin. Thiel expressed doubts about whether Bitcoin is still fulfilling that vision, citing the preference of criminals for Bitcoin over cash as an indication that it may not be working as intended.
In contrast, Monero has remained true to the original vision and has even gained ground in markets previously dominated by Bitcoin. It has seen adoption and usage in darknet markets and has attracted attention from cypherpunk influencers and commentators. Additionally, Monero has increased its share and dominance in Clearnet marketplaces, such as gift card crypto providers.
Despite facing opposition from governments worldwide, including the European Union’s ban on anonymous payments and enforcement actions by the United States and the Netherlands against open-source developers, Monero has grown stronger. It has gained more supporters and increased awareness. While it has been delisted from major crypto exchanges like Binance and OKX, trading of Monero has surged on decentralized exchanges like Haveno. Buyers have even been willing to pay a premium to acquire Monero in these “street” markets, demonstrating the demand for the coin.
In conclusion, Monero has a promising future within the cypherpunk and grassroots cryptocurrency communities that originally supported Bitcoin. In a scenario of increased adoption and demand, the price of Monero could experience a significant increase, potentially reaching a market cap of $15 billion and becoming one of the most valuable cryptocurrencies. However, there are challenges that Monero must overcome, particularly in terms of liquidity and regulatory issues, for this hypothetical rally to occur.
Disclaimer: The information provided in this article should not be considered investment advice. Investing in cryptocurrencies carries risks, and your capital is at risk.