Markets
Here’s Why This $3 Billion Cryptocurrency Could Reach a $15 Billion Market Cap
O cryptocurrency market is full of opportunities and value asymmetries that astute observers can take advantage of. In this regard, market capitalization is a powerful benchmark for drawing comparisons between competing projects for a given period. fundamental analysis.
In particular, Monero (which is currently worth $3 billion)XMR) stands out with strong fundamentals, suggesting an undervalued capitalization. Monero is one of the solid competitors that is gradually capturing part of Bitcoin (BTC) market share among cryptocurrencies.
The project has most of Bitcoin’s touted strengths and benefits from more efficient transactionsan improvement ASIC centering resistant proof-of-work systemand a battle-tested privacy-by-default network.
At the time of writing, Monero was trading at $165.38 with a market cap of $3.09 billion, ranking 28th. A rise to $15 billion would effectively increase its price fivefold to $826, reaching new highs. Interestingly, this measure would only require exactly 1% of Bitcoin’s $1.20 trillion capitalization.
Monero (XMR) all-time price chart. Source: Finbold
Leading privacy and cypherpunk cryptocurrency adopted
The cryptocurrency has a battle-tested privacy-by-default solution for peer-to-peer money transfer, often praised by popular communities and longtime Bitcoin supporters.
For example, in September 2020, the United States 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 no such tool exists.
Recently, Peter Thiel, a longtime Bitcoin supporter, billionaire and co-founder of PayPal, questioned the current state of BTC based on fundamental view this interested him. Thiel mentioned cypherpunk, crypto-anarchist, libertarian and “anti-centralized government” ideals as the core of Bitcoin’s value proposition.
“That happens [BTC] does it really work that way? Or did this thread somehow get lost? So when people at the FBI tell me they’d rather criminals use Bitcoin than hundred dollar bills, it suggests that perhaps it’s not working as it should. I have a twofold reason. One of them is this kind of ideological, decentralized future of the computing world that I really believe in. I really believe it would be better, and [Bitcoin] It seemed like the perfect vehicle for this a long time ago, and I’m much less convinced of it.”
Pedro Thiel
On the other hand, Monero has been conquering 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 opinion of cypherpunk influencers and commentators. Additionally, XMR has increased its usage share and dominance in Clearnet markets such as crypto gift card providers.
War on Privacy and Monero’s Resilience
Notably, major governments around the world have declared war on financial privacy and, more specifically, Monero through arbitrary enforcement of the law.
In particular, the The European Union has banned anonymous payments. Meanwhile, the The United States and the Netherlands led enforcement actions against open source developers, raising concerns even from well-known cryptocurrency critics.
This scenario has notably given Monero more traction, attracting more supporters to the cause and increasing its awareness. Suddenly, XMR has become the first and second favorite cryptocurrency of many enthusiasts, increasing its potential.
Despite being removed from the main list cryptocurrency exchanges as Binance and OKExXMR trading increased by decentralized exchanges like Haven. Buyers have been paying a premium to acquire Monero on these “street” marketshighlighting the demand for the currency.
In conclusion, XMR has a bright future within the cypherpunk and other grassroots cryptocurrency communities that previously supported Bitcoin.
In a positive scenario for adoption and growing demand, Monero’s price could rise dramatically as it targets a $15 billion market cap, potentially ranking among the most valuable cryptocurrencies. However, XMR must overcome significant challenges for this hypothetical rally, including liquidity and regulatory spectra.
Disclaimer: The content of this website should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.