Contrary to what the charts were indicating 36 hours ago, Monero successfully changed its course to stay away from the US$10 price point. Instead, the value is now heading back to US$12, which can mostly be attributed to Bitcoin’s timely price increase over the past 24 hours. XMR didn’t do much, nor did it spark any interest from traders. For now, the altcoin continues to piggyback n Bitcoin’s value and momentum.
Monero Holders Breathe A Sigh of Relief
Although the XMR value has risen again, this is solely thanks to Bitcoin’s value going up. Monero continues to suffer from a low trading volume in the USD market to many even the smallest of impacts. As was to be expected, the trading volume in the USD market remained rather low. In fact, it was the second-lowest volume of all week and only the fourth lowest in the past two weeks.
As is the case for nearly every other altcoin in existence, they tend to piggyback on Bitcoin’s success in the price department. Monero is no different in this regard right now, even though it is a far cry from Bitcoin in nearly every aspect. That is a positive thing, as we have seen far too many Bitcoin clones over the past few years already.
Considering how Bitcoin remains the largest trading market for Monero, it is unlikely this parasitic relationship will change anytime soon. Without sufficient fiat currency volume to carve its own path, Monero holders will be at the mercy of Bitcoin speculators. Luckily for them, Bitcoin seems to be going through a rather positive period right now, which will have an impact on all major altcoins, including XMR.
One thing that remains rather disconcerting is how the Kraken exchange continues to struggle for XMR trading volume, despite enabling the market several weeks ago. Kraken represents over 7% of the 24-hour volume nearly every day, but it has only generated barely over 10% of Poloniex’s trading market. Moreover, Bitfinex remains firmly in second place, with over three times the USD volume Kraken has.
It seems evident speculators and investors are not too keen to invest in altcoins such as Monero directly. Instead, they will go through Bitcoin first, or just leave the XMR market for what it is. More liquidity and volume in the USD market could send Monero’s value shooting upwards, but for now, that is not likely to happen soon. Instead, Monero holders need to hope Bitcoin’s value continues going up in the next few months.
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About JP Buntinx
JP is a freelance copywriter and SEO writer who is passionate about various topics. The majority of his work focuses on Bitcoin, blockchain, and financial technology. He is contributing to major news sites all over the world, including NewsBTC, The Merkle, Samsung Insights, and TransferGo.