Like the market signals moderate the future of Monero (XMR)
Monero, a popular cryptocurrency, has been in a roller coaster in a ride in recent years. From his humble beginnings as a project focused on mining to his current status of digital currency in all respects with a dedicated community, Monero’s path towards success is a fascinating example of how market signals can model the future of a resource.
The first days: mining and domain
Monero was introduced for the first time in 2014 by its creator, Nikita Nakomovsky. Initially, the project focused on mining using powerful “ants” called machines, which were used to solve complex mathematics problems. As Monero’s question grew, Nakomovsky has expanded his business model to include other mining activities, such as the CPU and the GPU mining. However, Monero’s price has remained relatively stable in his early years.
MARKING SIGNALS: XMR
ascent
Fast ahead of 2017, when Monero’s fortunes started to change. A series of market signals indicated that something was wrong in the cryptocurrency space. A key signal was the sudden drop in the price of Bitcoin (BTC), which had been a dominant force for many years. While investors turned their attention to more stable goods such as Monero, BTC’s demand collapsed.
Another significant market signal was the rise of Altcoin, or cryptocurrency alternatives, which were exchanged at significantly lower prices than the main coins such as BTC and ETH. This trend has created an opportunity for smaller projects such as Monero to earn traction.
The turning point XMR
On May 25, 2017, a mysterious hacker known as “Monero’s Ghost” launched the notorious Monero Wallet 1.0 exit, which introduced significant improvements to the blockchain and new features such as the invisible addresses (also known as “Dark Addres”). This move sent shock waves through the cryptocurrency community, while investors have started to re -evaluate their positions.
The subsequent increase in prices was a testimony of market signals. The XMR value has increased by over 3000% in only two weeks, making it one of the faster growth of all time.
MARKET SIGNALS: the Monero Bull Run
In the months following Ghost Hack, Monero’s price continued to increase, reaching a historic maximum of $ 13.64 in June 2017. This bull race was fed by a combination of factors, including:
- Increase in adoption : as more investors have realized XMR and its potential benefits (for example, anonymity and privacy), the question has grown.
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- Safety improvements : The new security measures introduced by the ghost hacks have contributed to restoring the user’s trust in Monero.
MARKET SIGNALS: the XMR
correction
However, as with all the market signals, there have also been warning signs that the Toro race at the end would have finished. In August 2017 a sudden recession occurred, with the prices that collapsed by over 70% in just six weeks.
This correction was probably caused by a combination of factors, including:
- Super-Saturazione : the price wave had created an excessive demand, leading to an XMR surplus on the market.
- Risks of liquidity : The sudden loss of trust in the safety and usability of Monero may have led investors to bring out their money from the market.
MARKING SIGNALS: the XMR Rally
Despite this correction, XMR has bounced strongly in 2018, led by a combination of factors such as:
- Increase in adoption : as more users have acquired experience with Monero, the question has grown.
- improved security : new updates and improvements to the blockchain have made use for users.
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