Monero (XMR) is the leading privacy-focused cryptocurrency, ranked 29th among the most valuable cryptocurrencies. Currently, XMR is trading at $163.8, with a $3 billion market capitalization.
However, Monero now faces the threat of losing most of its liquidity due to a regulatory crackdown against monetary privacy. The coin has been delisted from local exchanges in specific countries for a while, but the issue has suddenly become global.
On December 27, rumors started circulating about Binance delisting monero in January. On December 29, The Block reported that OKX will delist XMR and other privacy coins in the first week of 2024.
Monero markets. Source: CoinMarketCap
Monero (XMR) price analysis
Therefore, XMR lost more than 6% of its price in the last 48 hours following the rumors and, later, the news. Monero suffered a tougher hit despite the whole market crashing, losing its 26th position by market cap.
Monero (XMR) daily price chart. Source: TradingView
Interestingly, the leading native-privacy cryptocurrency has been trending upward since August 2023. Nevertheless, the real economic effects of worldwide delistings from major markets are yet to be discovered.
At this moment, investors must remain cautious and properly evaluate the consequences of such a regulatory capture on privacy. Decentralized alternatives and markets are already surging to supply Monero’s liquidity, although still mostly embryonic.
All things considered, XMR could possibly face liquidity issues in the following weeks as the market adapts to the changes. Further, proving its resilience in such an adversary scenario can propel Monero’s adoption and investors’ trust moving forward.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
