The cryptocurrency Monero (XMR) has shown record growth, reaching a new all-time high – at its peak, its price approached $600. This occurred against the backdrop of significant trading activity and major events in the digital asset sector.
This is reported by Business • Media
Monero’s Growth and Reasons for Market Dynamics
According to TradingView, XMR was trading in the range of $596–$598 at one point, and at the time of this news preparation, the price was $578.6. Over the past 24 hours, trading volume has increased by over 243%, while market capitalization has risen by 18.7% – data provided by CoinMarketCap.
The cryptocurrency community emphasizes that the catalyst for this growth was the split in the Zcash project – another well-known privacy coin. Both assets belong to the category of private cryptocurrencies and hold leading positions in market capitalization.
“These price fluctuations convincingly indicate that Powell’s statement about the independence of the Fed being under threat has raised concerns among investors regarding the traditional dollar-based financial system. Once the public sufficiently believes that this is no longer the case, investors will begin to seek hedging means against the traditional system, and gold and bitcoin are such means,” stated Peter Chang, head of research at Presto Research, in a comment to The Block.
Impact of the Zcash Crisis and Macroeconomic Factors
Disagreements among developers of the Zcash project led to their exit from the Electric Coin Company and the announcement of a new cryptocurrency project. Against this backdrop, Zcash (ZEC) lost about 20% of its value over the week, and its capitalization and trading volume significantly decreased. This indicates a liquidity shift in favor of Monero, which is its main competitor in the privacy coin segment.
Among additional reasons for Monero’s growth, experts highlight the overall positive dynamics in the cryptocurrency market, driven by a new escalation of tension between U.S. President Donald Trump and Federal Reserve Chair Jerome Powell. Powell’s statements regarding external pressure on the Fed and undermining its independence have intensified distrust in the traditional financial system, prompting investors to focus on assets that are not controlled by government entities – particularly cryptocurrencies and gold.
Ultimately, such macroeconomic and internal market factors contribute to the high volatility of digital assets, which may lead to further price fluctuations.
