“If privacy is outlawed, only outlaws will have privacy”. Phil Zimmerman
“We didn’t love freedom enough.” Aleksandr I. Solzhenitsyn
“Cryptography is the ultimate form of non-violent direct action”. Julian Assange
XMR/USD 3 Month Price Action
In January, we delved into the reasons why Monero is one of the most attractive cryptocurrencies in the marketplace https://theimpartiallens.com/the-weekly-lens-crypto/. The bears had the upper hand in January but the price action turned bullish in February, before declining again to complete a double bottom low of $141.20 on 22 February. Monero then exploded to the upside, rallying 104% from the 22 February low to $288.82 on 21 April. We have since stalled at heavy resistance (August – November 2021), then inevitably breached the 8 day Exponential Moving Average ($264) and XMR/USD currently sits at $258.
Monero still Undervalued
A notable feature of the recent price action was the fact that Monero was exceptionally bullish in April while Bitcoin and most others have had a bearish month. Despite the 3 month rally, we believe Monero is extremely undervalued and is still only ranked 34 in the Top 100 list by market capitalization. Monero is the only crypto in the top 100 list that provides mandatory privacy for all transactions by default and is currently -52% off its all time high on 09 January 2018. Monero after-all, solves Bitcoin’s most serious problem ie. lack of privacy by default and therefore its lack of fungibility. In our opinion, this market will only show signs of maturity once Monero’s market capitalization challenges those cryptos in the upper echelons of the market place.
XMR/BTC
In the XMR/BTC pair above, we can see the extent of Monero’s Easter rally Vs Bitcoin in an impressive show of strength.
Monero/USD Price Action: 7 Day: +7.1% – 14 Day: +9.2% – 30 Day: +29..4% – 90 Days: +74% – 1 year: -32%.
Bitcoin/USD Price Action: 7 Day: -1.5% – 14 Day: -4.6% – 30 Day: -9% – 90 Days: +9.48% – 1 Year: -19.6%.
There are some interesting developments on the horizon for Monero such as the commencement of the Tail Emission. Unlike Bitcoin, Monero’s block rewards will never fall to zero. The block reward for miners has been gradually declining since Monero’s inception and the tail emission will begin on 08 June 2022. Miner rewards will be fixed at 0.6 XMR per block. Tail emmission will incentivise miners to secure the network. For further reading into why Monero chose to have a Tail Emission instead of a fixed supply: https://localmonero.co/knowledge/monero-tail-emission?language=en
Monero will also undergo a network upgrade on 16th July, 2022. Important new innovations include:
-A significant ring-size increase from 11 to 16.
-Viewtags to reduce wallet-sync times by up to 40%.
-Bulletproofs+ which will reduce transaction sizes by 5-7% and also improve verification performance by 5-7% which will lead to lighter and faster transactions. For more details on the network upgrade, read the following piece from sethforprivacy: https://www.getmonero.org/2022/04/20/network-upgrade-july-2022.html
