On November 6, the number of Monero (XMR) transactions reached its all-time high.
The privacy of this cryptocurrency is one of the main attractions for its users.
On November 6, 21,287 transactions occurred in Monero (XMR). This is, so far, the maximum number of movements that this blockchain ever had in a single day.
This figure represents an increase of 227% in the number of daily transactions since January 1, 2020. In the last month, the price of XMR accompanied the increase in its use and it was with an increase of 17%, which positioned it as the second crypto asset with the highest appreciation in October.
This coin, launched in 2014, maintained a relatively constant number of transactions until mid-2016. That year, the adoption by a major darknet market, AlphaBay, significantly increased the use of Monero.
The reason for its adoption then and for its increasing use in underground markets is that, unlike what happens with other cryptocurrencies such as, for example, Bitcoin (BTC), transactions in XMR are not public. Only the sender and receiver can see the addresses in a trade and the amount traded.
Although AlphaBay closing in 2017, the number of transactions on Monero followed a mostly bullish trend since then. The increase in its use in these markets seems to be the main reason for the greater number of transactions.
Monero privacy attracts users and triggers government alarms
The privacy of this cryptocurrency is one of the main attractions for its users. This feature is also what puts Monero in the crosshairs of government regulators around the world.
For example, South Korea will ban the use of Monero, Dash (DASH), and Zcash (ZEC) on its territory. The reason for the ban is that the Financial Intelligence Unit of that Asian nation classifies them as “dark currencies” due to the difficulty in tracking their transactions.
Also, the US Internal Revenue Service (or IRS) is behind Monero. In September, it offered a reward of $ 625,000 for anyone who offers technology capable of tracking transactions in Monero.
A month after that, with no results in sight despite the magnitude of the reward offered, the IRS signed contracts with cryptocurrency analytics companies Chainalysis and Integra FEC to develop tools that allow for transaction tracking.
Increasing pressure from regulators was the reason why some centralized exchanges, ShapeShift, in this case, decided to remove Monero from their platforms.
The future of this cryptocurrency depends on its developers, most of whom remain anonymous. Besides, they are accompanied by a large community that is looking for ways to deal with censorship. They continuously pose possible attack scenarios to prepare their corresponding defensive strategies.
By: Jenson Nuñez.
