Monero (XMR), a privacy-focused cryptocurrency, is ranked 29th by market cap among the most valuable digital currencies. As of the time of writing, XMR has a market value of $3 billion and is trading at $163.3. Despite its strong position among privacy coins, Monero is threatened with the loss of liquidity and investors due to increasing regulatory pressures on financial privacy.
Recently, Monero was delisted from certain local exchanges in various countries, escalating the issue from a local to a global concern. Rumors have been growing about Binance‘s potential delisting of Monero in January, and on December 29, reports surfaced that OKX would remove XMR and other privacy-focused coins from its listings in the first week of 2024.
Binance plays a significant role for Monero, hosting approximately 25% of its total trading volume, while OKX holds a smaller share of about 2%. If delisting occurs, the loss of such liquidity could be a severe blow to XMR and its investors, potentially affecting the availability of the coin on other exchanges connected to Binance and OKX, and damaging the altcoin market.
Following these developments, XMR experienced a 6% price drop within 48 hours, trading at $163. The negative price movement has brought Monero into the spotlight once again, with the coin suffering a harsher blow than the general market downturn, leading to a drop in its market cap ranking.
Interestingly, XMR had been showing an upward trend since August 2023, and the real economic impact of being delisted from major global markets may not yet have been fully felt. These factors could lead to Monero facing more pronounced liquidity challenges in the coming weeks.
If Monero can demonstrate resilience in the face of these potential adversities, it could significantly boost its adoption and investors’ confidence, showing that it can withstand regulatory pressures and market fluctuations.