The Cryptocurrency market has been experiencing a drop in all the main currencies since March 6. The currencies that have been affected are Ripple, Litecoin, Bitcoin, Bitcoin Cash, Ethereum, and Cardano. Monero has weathered the storm as it is yet to be affected. Cumulatively, the Cryptocurrencies have recorded a decline of $22 billion in value.
Since March 6, Monero is the only major currency that has gained in value showing a small increase of 2%. Meanwhile, Litecoin dropped by 4%, Bitcoin cash and Ripple 3%, Ether 5% and bitcoin 2.5%.
Monero; Why It Is Thriving
Over the past few weeks, Monero is among the Cryptocurrencies that have been experiencing an increase in price. At the beginning of this month, its price was $285, by March 7, its price has stabilized at $360 recording a 26% hike in price.
The increase in popularity of this coin has been caused by the increased attention given to Cryptocurrencies that focus on privacy. Of all the cryptocurrencies in the market, Monero is the only one that makes every transaction on the Blockchain network anonymous. Therefore, transactions done on the Monero network is untraceable, unlike its sister Cryptocurrencies.
The Monero team once explained in an interview with CryptoRand, a Cryptocurrency analyst that all transactions by Monero need complete compulsory privacy unlike other coins mentioned. The team also pointed out that with the other private Cryptocurrencies privacy is rarely sued and it is usually optional because it is not supported by wallets and it is complicated. These other currencies include Dash, Zcash, and PivX.
Governments such as South Korea and the US are increasing pressure on Cryptocurrency users due to tax reasons. Towards the end of February, IRS (Internal Revenue Service) in US got a court order obliging Coinbase, a major bitcoin exchange, to provide data on its customers in an effort to tax their bitcoin returns. A week later the Bitcoin exchange platform was sued for insider trading which further attracted government intervention. This pressure from the state is likely to increase the demand for privacy oriented Cryptocurrencies. This is good news for Monero considering the fact that it has managed to stay afloat in the last one week. Chances are that it will maintain the momentum for a while.
Ethereum and Bitcoin
Bitcoin has dropped by a small percentage (it has fallen below the $10,000 mark to $9, 750) as compared to other strong Cryptocurrencies such as Cardano and Ethereum that have dipped by over 5%. Notably, in the last two weeks, Bitcoin has outshone most vibrant Cryptocurrencies in the market.
Bitcoin has fallen by 43% from its highest value in History while Ethereum has dropped by 43.6% from its best price ever of $1,400. Ethereum has shared the same price trend with Bitcoin up until February; it rose as Bitcoin rose. But in the last two weeks, it has been struggling to keep up.
In this revival stage, Bitcoin is likely to outdo other similar Cryptocurrencies in the short-term because new investors are starting with Bitcoin before venturing into other assets and buyers with other Cryptocurrencies are shifting to Bitcoin.