Monero (XMR) price prediction 2021

What to expect for the price of Monero this year and beyond.

Updated

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Launched in April 2014, Monero (XMR) uses ring signatures, ring confidential transactions and stealth addresses to provide anonymous and untraceable transactions. These privacy features were a key factor that saw Monero rise from around US$10 at the start of 2017 to reach US$350 by the end of the year.

However, in a crowded privacy coin market, does Monero have the features and functionality needed to achieve further growth, or is its price headed for a dip?

Learn more Where to buy Monero (XMR)

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade.

Quick facts

Coin nameMonero
SymbolXMR
Algorithm typeCryptoNight
MineableYes
Launch date18 April 2014

Monero price prediction

Predicting the future price of any cryptocurrency is a tricky business. Not only are digital currencies highly volatile, but their prices are also influenced by a wide range of internal and external factors.

Some of the issues that could potentially drive price rises or prompt a drop in the value of Monero are outlined in the table below.

What could drive Monero’s growth?

  • Supply. The initial supply of Monero will be ~18.4 million coins, after which time there will be a permanently fixed production of 0.3 XMR per minute to counteract the number of lost coins per year. At the time of writing (08/03/2018), CoinMarketCap reported the circulating supply of XMR at 15,800,285.
  • Demand. The sheer number of coins targeting private transactions would seem to indicate that anonymity is a key concern for many cryptocurrency users. The popularity of such currencies also indicates that there is demand for privacy coins, and this is the market which Monero is aiming to tap into.
  • Privacy and anonymity. While some coins only offer a limited level of anonymity or provide private transactions as an optional feature, Monero’s key goal is to offer private and untraceable transactions. This is a unique selling point that sets it apart from many other coins.
  • Increased regulation. As legislators and law enforcement agencies have battled to keep pace with the rise of cryptocurrency, this has seen an increase in the ability to track transactions using bitcoin and other coins. As a result, users who value their privacy may be forced to search for a coin that offers a higher level of anonymity, such as Monero.
  • Its history. Monero has been around since 2014 and has established a reputation as a secure and anonymous currency with trusted privacy features. This could help it fight off challenges from other, newer competitors.
  • MoneroV. On 30 April 2018, a new cryptocurrency known as MoneroV will be created from a Monero hard fork. The new coin integrates the MimbleWimble protocol with the aim of being fully scalable. At the time of the fork, XMR holders will receive MoneroV tokens at a rate of 1:10, and at the time of writing (09/03/2018), this was one factor contributing to a recent XMR price rise.

What could hold Monero back?

  • Competition. There are plenty of other cryptocurrency projects focused on providing private transactions as standard or as an optional feature. Zcash, Verge and Dash are just a few of the competitors that could potentially challenge Monero for market share.
  • Ties to illegal activity. Every coin that places an emphasis on private transactions inevitably ends up being linked with criminal activity, which can hamper a coin’s widespread public perception and impact upon its level of adoption. For example, Monero has been exploited in cryptocurrency mining operations, while it’s also been reported to have become the currency of choice for criminals on the dark web. Even North Korea has been reportedly mining Monero and stealing it by hacking servers in South Korea.
  • Increased regulation. Another factor to consider is that governments in several countries around the world are regularly reported to be planning “crackdowns” on cryptocurrency. Due to their perceived connection to illegal activity, privacy coins could well be the target of any new legislation. Of course, whether or not coins like Monero could sidestep any new regulations remains to be seen.
  • Scalability. Monero’s critics have pointed to potential issues with the currency’s scalability, as the privacy technologies used increase the size of Monero transactions, which could lead to slower processing times and higher transaction fees in the future. However, Monero’s developers are looking at ways to work around this issue.
  • Mining centralisation. Critics have also suggested that the centralisation of Monero mining exposes it to the risk of someone else seizing control of the network. However, Monero plans to combat this problem with a hard fork.

Where to buy Monero

Name Product Deposit methods Fiat Currencies Cryptocurrencies
Binance Cryptocurrency Exchange Australia
Credit card, Cryptocurrency, Debit card, Osko, PayID
USD, AUD, GBP, CAD, EUR, CNY, RUB, TRY, NGN, UAH & 40+ more

263
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Poloniex Digital Asset Exchange
Bank transfer (ACH)
USD, EUR, AUD, CAD, CHF, CZK, DKK, GBP, HUF, ILS & 20+ more

115
cryptocurrencies

Trade various coins through a global crypto to crypto exchange based in the US.
Bittrex Global
Bank transfer (ACH)
USD

278
cryptocurrencies

Buy from one of the largest cryptocurrency exchanges with a selection of over 190+ cryptocurrencies and 3 USD pairings.
Bitfinex Professional Trading Exchange
Bitfinex Professional Trading Exchange
Cryptocurrency
USD, EUR, GBP, JPY

164
cryptocurrencies

Cryptocurrencies are a highly volatile investment product. Your capital is at risk.
Spot trade all of the major cryptos on this full-featured exchange and margin trading platform.
CoinSwitch Cryptocurrency Exchange
Bank transfer (ACH)
USD, JPY, RUB, EUR

387
cryptocurrencies

CoinSwitch allows you to compare and convert over 250 cryptocurrencies across all exchanges.
Changelly Crypto-to-Crypto Exchange
Bank transfer (ACH)
USD, EUR, GBP, AUD, CAD, CHF, HKD, JPY, PHP, ZAR & 30+ more

146
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Access competitive crypto-to-crypto exchange rates for 150+ cryptocurrencies on this global exchange.
KuCoin Cryptocurrency Exchange
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210
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Finder Exclusive: Get up to 10 USDT in trading fee rebates for signing up and making a deposit, and up to 30 USDT in trading fee rebates after buying with fiat. T&Cs apply.
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Kraken Cryptocurrency Exchange
Bank transfer (ACH)
USD, EUR, GBP, JPY, CAD, CHF, AUD

53
cryptocurrencies

Buy, sell and trade a range of digital currencies on this high-liquidity exchange – suitable for beginners right through to advanced traders.
HitBTC Multi-currency Exchange
HitBTC Multi-currency Exchange
Bank transfer (SEPA), SWIFT
USD, EUR

212
cryptocurrencies

Buy crypto with fiat (USD/EUR) and trade over 150 other digital assets on this Europe-based exchange platform.
Huobi Cryptocurrency Exchange
Cryptocurrency
GBP, USD, AUD, EUR, INR, BRL, KHR, CAD,CNY, NZD & 15+ more

290
cryptocurrencies

Huobi is a digital currency exchange that allows its users to trade more than 190 cryptocurrency pairs.
Indacoin Cryptocurrency Exchange
Bank transfer (ACH)
USD, EUR, RUB

158
cryptocurrencies

Use your credit or debit card to buy bitcoin and other cryptocurrency without having to verify your identity.
Liquid Cryptocurrency Exchange & Margin Trading
Bank transfer (ACH)
AUD, EUR, JPY, USD, SGD, PHP, HKD

132
cryptocurrencies

Disclaimer: Highly volatile investment product. Your capital is at risk.
Liquid is a unified, globally-sourced trading platform that bridges the worlds of fiat and crypto.
OKEx Cryptocurrency Exchange
Bank transfer (ACH)
USD, CNY, EUR, ARS, AUD, BGN, BRL, CAD, CHF, COP & 20+ more

269
cryptocurrencies

Listing over 100 cryptocurrencies, OKEx offers its users a variety of payment methods and coins to choose from.
Bitit Cryptocurrency Marketplace
Bank transfer (ACH)
EUR, USD, JPY, DKK, GBP, SEK, NOK, TRY & 5+ more

50
cryptocurrencies

Buy cryptocurrency with cash or credit card and get express delivery in as little as 10 minutes.
ShapeShift Cryptocurrency Exchange
Cryptocurrency
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51
cryptocurrencies

Quickly swap between more than 40 cryptocurrency assets or use your credit card to instantly buy bitcoin.
Hotbit Cryptocurrency Exchange
Hotbit Cryptocurrency Exchange
AdvCash, Cryptocurrency, Payeer, Perfect Money
USD

512
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A multi-currency exchange with 150+ pairings that can be accessed through desktop as well as a mobile app.
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What’s coming up in Monero’s roadmap

New tech upgrades and releases could potentially have an impact on the price of Monero, so let’s take a look at some of the key developments coming up in Monero’s roadmap. The next items on the list include:

  • Multi-signatures. The implementation of multi-signature technology, currently in the testing phase, could potentially increase Monero’s acceptance levels with businesses and merchants.
  • Kovri alpha release. This C++ implementation of the I2P network is designed to increase the security of transactions.
  • Second-layer solutions for speed and scalability. There are multiple solutions being considered to help improve transaction speed and reduce fees.
  • More efficient range proofs for RingCT to reduce transaction sizes. Known as Bulletproofs, these are designed to reduce Monero’s transaction size by up to 80% and also lower transaction fees.

Monero’s competition

The level of adoption Monero can achieve will in part be influenced by the actions of its competitors, which could have a positive or negative effect on the price of XMR. Some of the other main contenders in the privacy coin sphere include:

  • Dash (DASH). A peer-to-peer digital currency that aims to become the world’s most user-friendly and scalable payments-focused cryptocurrency, Dash offers optional private transactions using its PrivateSend feature.
  • Zcash (ZEC). An open, permissionless cryptocurrency that uses zero-knowledge cryptography to protect the privacy of transactions, Zcash enables anonymous payments.
  • Verge (XVG). Verge uses Tor technology and I2P routing to conceal user IP addresses and protect the privacy of transactions.
  • PIVX (PIVX). A hard fork of Dash, PIVX features a built-in mixing mechanism to anonymise transactions.
  • Bytecoin (BCN). Launched in 2012, this anonymous cryptocurrency uses a ring signature algorithm called CryptoNote to provide transaction privacy.
  • Nav Coin (NAV). Created with the aim of providing fast and affordable online payments, Nav Coin also offers a range of privacy features including optional anonymous transactions.

Beyond 2021: What does the future hold for Monero?

Unlike many other cryptocurrencies, Monero is private by default and has been designed with private and anonymous transactions at the top of its list of goals. This fact alone should stand it in good stead, as history has shown that there’s certainly demand for a coin that allows secret transactions.

However, Monero’s privacy is something of a double-edged sword. While its untraceable nature makes it an attractive proposition for anyone who wants to transact anonymously, this also makes the coin a suitable choice for anyone who operates outside the law. This could severely hamper the mainstream public perception of Monero, while it also raises the risk of potential regulatory changes.

The other main challenge for Monero looks to be scalability. While transaction sizes could prove a problem as the network increases in size, there are plans in place to help overcome this problem. If Bulletproofs can reduce Monero’s transaction size and fees as planned, there’s plenty of potential upside for this popular privacy coin.

Bottom line

The most important thing to remember with Monero, or any other cryptocurrency for that matter, is that nothing is certain. There’s a big market for privacy coins and Monero is a leading player, but it’s far from the only fish in this crowded sea.

However, as an established coin with a solid reputation for providing secure and anonymous transactions, it’s well positioned for the battle that lies ahead. If the Monero community can successfully tackle scaling issues before they become major problems, and without impacting on XMR’s privacy features, this should mean good things for Monero moving forward.

Just make sure that you thoroughly research Monero’s pros, cons and influencing factors before deciding whether you should add any XMR to your cryptocurrency portfolio.


Images: Shutterstock

Disclaimer: Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

At the time of writing, the author holds IOTA and XLM.

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