Monero’s (XMR) recent upsurge intensified at the start of this week on plans for adoption by two large, darknet markets but where will the cryptocurrency head next? Posting an all-time high at $7.00, XMR-USD on the Poloniex exchange has since been tempered below $4.00, trading at $3.80 at the time of writing.
It is the first time bitcoin has been challenged with a substitute in these markets, as the novel protocol behind monero enables anonymous transactions. However, monero has to still achieve a strong enough network effect, as anonymizing payments require frequent transactions of similar sizes.
Large transactions would have difficulty with matching and consequently, cause a compromise of a user’s privacy. But as more and more users get on board and more darknet sites are potentially likely to follow the market leaders, this could see monero outgrow this problem.
This is a positive fundamental for Monero over the long term as this will boost demand for the cryptocurrency. This is already evident from the volumes across various exchange over the past 24 hours. This could intensify further once the implementation is in place, with large darknet market Alphabay