Markets
Here’s Why This $3 Billion Crypto Could Hit a $15 Billion Market Cap
THE cryptocurrency market is full of opportunities and value asymmetries that can benefit astute observers. In this regard, market capitalization is a powerful benchmark for making comparisons between competing projects for a fundamental analysis.
In particular, Monero, which is currently worth $3 billion (XMR) stands out for its solid fundamentals, suggesting an undervalued capitalization. Monero is one of the strong competitors that is gradually capturing part of Bitcoin (Bitcoin) market share among cryptocurrencies.
The project has most of Bitcoin’s lauded assets and benefits from more efficient transactionsan upgrade Proof-of-work system resistant to ASIC centralizationand a battle-tested default privacy network.
At the time of writing, Monero is trading at $165.38 with a market cap of $3.09 billion, placing it 28th. A jump 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 $1.2 trillion market cap.
Monero (XMR) historical price chart. Source: Finbold
Top-tier privacy and cypherpunk cryptocurrency adopted
The cryptocurrency has a proven privacy-by-default 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 entrepreneurs who could develop tools to help track down Monero. This bounty was never claimed, suggesting that no such tool exists.
Recently, Peter Thiel, a former 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 being at the core of Bitcoin’s value proposition.
“Is it that [BTC] does it really work like that? Or did this thread get lost somehow? So when people at the FBI tell me they’d much rather criminals use Bitcoin than hundred-dollar bills, it suggests that, perhaps, it’s not working quite the way it was supposed to. . I have a double reason. One is this sort of ideological, decentralized future of the computing world that I really believe in. I really believe it would be better, and it would be better. [Bitcoin] It seemed like the perfect vehicle for this for so long, and I’m much less convinced.
Pierre Thiel
Conversely, Monero has conquered this original vision, as well as markets previously dominated by BTC. Darknet markets are a clear example of adoption and use cases, but also the mindshare of cypherpunk influencers and commentators. Additionally, XMR has increased its usage share and dominance in Clearnet markets, such as cryptocurrency gift card providers.
The War on Privacy and Monero’s Resilience
Notably, major governments around the world have declared war on financial privacy and, more specifically, Monero by arbitrarily enforcing the law.
In particular, the European Union bans anonymous payments. Meanwhile, the The United States and the Netherlands have taken coercive action against open source developers, raise concerns even from known critics of cryptocurrency.
This scenario remarkably gave Monero more strength, attracting more supporters to the cause and increasing its notoriety. All of a sudden, XMR became the first and second favorite cryptocurrency for many enthusiasts, increasing its potential.
Although it was removed from the list of major crypto exchanges as Binance and OKXXMR trading surged in decentralized exchanges like Haveno. Reportedly, buyers paid a premium to acquire Monero on these “street” markets.which is a testament to the demand for the piece.
In conclusion, XMR has a bright future ahead of it within cypherpunk and other popular cryptocurrency communities that once supported Bitcoin.
In a positive scenario of adoption and increased demand, Monero’s price could rise significantly as it targets a $15 billion market cap, potentially ranking among the most valuable cryptocurrencies. However, XMR faces challenges relevant to this hypothetical rally, including liquidity and regulatory specters.
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