Monero (XMR) is one of the best performers of the top 10 cryptos; in the last 24 hours. It has held strong in spite of a market that has largely been sluggish at best. This comes amidst news that after the recent upgrades, Monero transaction fees are now close to zero. The recent bulletproof upgrade has drastically reduced transaction sizes, which was the main reason for high transaction costs on Monero. The implication of this is that Monero is well-positioned for exponential growth, and could easily push it to over $1000 in the future. There is a solid reason to believe that Monero could be headed for such a great future ahead of it.
One reason to support such a probability is the fact that Monero will now eliminate the main value proposition that smaller privacy coins have developed over time. Just like there are lots of altcoins that capitalize on bitcoin’s slow transaction speeds, many small privacy coins capitalize on Monero’s high transaction fees as a key selling point. In essence, now that Monero (XMR)’s cost are now at par or even lower than most of them, chances are that it could eat into their market share.
There is no reason why anyone seeking to make a private transaction would go for some low cap privacy coin, when they can do so with a more proven privacy coin, that is much more affordable. This will consolidate the privacy market more towards Monero (XMR) and push it up in price. If investments in the privacy market move more towards Monero, then chances are that its value could rise pretty fast, and even $1000 would be within reach.
Then there is the element of perception. Monero (XMR) is perceived by many as one of the most reliable privacy coins in the market. In essence, now that its features are getting even better, its positive perception in the market will get better over time. This is something that could drive up its value as investors looking into privacy coins to focus more on it.
Most importantly, Monero (XMR)’s coin supply supports the potential for exponential growth in the long-run. Monero (XMR) has a low coin supply of just 16 million coins. This means that in a high demand market, the value of Monero (XMR) could rise pretty fast, as compared to most other coins in the market. With a coin supply that is lower than that of bitcoin (BTC), Monero (XMR) definitely has what it takes to hit upwards of a thousand dollars in the future.
Besides, Monero (XMR) tends to move in the same direction as bitcoin most of the time. This means that if Bitcoin rallies past its all-time highs, Monero (XMR) could rally hard as well. With Bakkt coming up, and more institutional players taking an interest in bitcoin, its value in the market could surge soon. Bitcoin has a good chance of pushing above $50,000 between now and 2020. If that happens, it will give momentum to strong altcoins like Monero (XMR) that are fundamentally strong on their own.