Monero price prediction for 2022 and beyond
Monero may be a crypto for privacy fans, but what’s the monero price prediction for 2022?
In this prediction
It has been described as the ultimate cryptocurrency for consumers who value their privacy. Monero (XMR) says transactions on its blockchain cannot be connected to particular users or to anyone’s real-world identity. Although this could be beneficial for people who are subject to censorship, critics argue it also enables crypto to be used for criminal activity and terrorist financing.
In this article, we’re going to explain what this coin actually does, and give you a monero price prediction for 2022.
What is monero?
As you may have deduced from our introduction, the monero cryptocurrency is a so-called privacy coin. In the early days of bitcoin, many people assumed all cryptocurrencies were anonymous, but this is not necessarily so.
Yes, BTC addresses and transactions are not connected to an individual’s account, but the use of exchanges and wallets can compromise someone’s identity. Plus, as all transactions on the Bitcoin blockchain can be traced by anyone, a little bit of detective work may be all it takes to unmask the owner of a certain address.
Monero trading is designed to be different. Because it is decentralised, the team behind the cryptocurrency claim that you don’t have to entrust the safe-keeping of your coins to a third party. Obfuscation techniques are also used to shield the origins of a transaction, as well as its value and where it was heading from public view. Groups of users are involved in validating transactions and they do it in such a way that it is computationally impossible to determine who was personally responsible.
Think of it like getting a standard letter from your bank, perhaps informing you of a change in interest rates: you know it’s been sent to you by a bank employee, but you have no way of knowing who the particular individual was.
Monero and the law
In 2019, the multinational Financial Action Task Force (FATF) pushed for a so-called ‘travel rule’ that would mean details of both the sender and recipient must be kept on record for crypto transfers over $1,000. While this particular bit of legislation may have looked dangerous for Monero, which relies on privacy as its main selling point, this was not necessarily the case. As the ComplyFirst website states:
“In usual circumstances, the sender’s intermediary will already know the required information about the sender (ie, its customer) through its own Know Your Customer process, and can require the sender to provide all other required transactional and beneficiary information as a prerequisite to executing the transaction. Notably, the travel rule applies only to transactions involving more than one regulated intermediary, so an exchange is not required (for example) to transmit a sender’s travel rule information to a beneficiary’s unhosted XMR wallet. Since the sending and receiving intermediaries are required to conduct Know Your Customer on their respective customers prior to providing services, the privacy-preserving nature of XMR therefore does not hinder compliance with the travel rule.”
In other words, as long as people trading in the crypto just do one thing at a time, then monero is still complying with the travel rule.
The top law firm Mishcon de Reya backs this interpretation, with the company’s website saying:
“The expanded travel rule does not capture peer-to-peer transfers of virtual assets which do not involve a virtual asset service provider (VASP) or financial institution, ie, so-called over-the-counter (OTC) trades.”
Omitting these transactions from the guidance, continues Mischon de Reya, was “deliberate” because, according to the FATF, it is aimed at placing anti-money-laudering (AML) and counter-terrorism-financing (CTF) obligations on “intermediaries between individuals and the financial system”.
Mischon de Reya adds:
“Whether this omission undermines the AML/CTF efficacy of the travel rule remains to be seen, given that unhosted wallets (ie, wallets held independently of a VASP) are believed to account for much of the illicit activity conducted using cryptoassets.”
As it stands, the travel rule doesn’t seem to be playing much of a role in monero future price predictions, but it’s important to keep an eye on to see whether there are any more regulatory changes in the near future.
To determine a monero future price point, it might be helpful to look back at its performance in the years since its launch. It’s important to remember that past performance does not indicate future results, but it does help to put current activity into context.
Much like other cryptocurrencies, there was a little movement in XMR to begin with. Those who bought monero at the start of January 2017, when it was trading at around $13, and held on to it until the end of the year would have seen it reach a daily high of $476.40 on 20 December, according to CoinMarketCap.
After that, though, it cooled and trended downwards. By January and February 2019, it was trading at between $42-$55. By 10 February 2020, it had climbed to $84.82, but the Covid-19 pandemic saw it drop to $35.37 on 17 March. It then climbed steadily for the rest of the year and finished 2020 at $156.57.
The first few months of 2021 were a boom time for crypto, and monero became caught up in the excitement. It reached $271 at the close on 17 February before dropping back to $197.55 at the close on 25 February. There was some slow and steady growth in March, before it hit an all-time high of $517.62 on 7 May.
The crash of late May 2021 brought monero’s price down and it fell below $200 at one point on 19 May. On 20 July, it fell to $183.10, and then peaked and troughed over the next two months. By 28 October, it was trading at around $262.03 and held steady at around $267.90 until 29 November. However, December was a difficult month for cryptocurrencies, with bitcoin falling by 29%. XMR was no exception, and by the 24 December the coin was valued at $207.08.
Monero price prediction
With all of this in mind, it’s time to look at monero price predictions for 2022. Let’s see what some forecasters have said – and how accurate their monero predictions were.
TradingBeasts took a cautious approach with its monero predictions. As Currency.com reported in early 2020, a monero prediction from TradingBeasts indicated that XMR would finish December 2020 at about $75. It also forecast that a monero future price of $156 was possible… in December 2023. However, it turned out that the publisher underestimated the coin. By 31 December 2020, TradingBeasts listed the price for monero at $159.57, which occurred far quicker and sooner than expected.
The site has updated its monero price prediction 2022 to say that it should average around $204.82 by the end of December 2022, around $232.26 by December 2023, and around $333.14 by December 2024.
Meanwhile, Wallet Investor has an XMR price prediction that says the price should reach $358.36 in a year’s time, and then $892.02 in five years. DigitalCoinPrice has a monero prediction for 2022 that says it will hit highs of $378.96 in August. The site’s XMR price prediction also suggests it will reach $304.02 by December 2023, $611.52 by December 2026 and $910.80 by December 2028.
Remember, however, when looking at price predictions that analysts can be wrong – so make sure to always do your own research and never invest more than you can afford.
Monero has a circulating supply of more than 18 million coins, according to CoinMarketCap. The figure for the maximum supply, however, is not available.
It might be. Monero has certainly reached highs in 2021. That said, you do need to be cautious. Cryptocurrencies can be highly volatile and prices can go down as well as up. You will need to do your own research and should never invest more than you can afford to lose.
Because of its nature as a ‘privacy coin’, monero isn’t listed on some of the major exchanges. To buy monero, you may have to use a smaller trading platform and use bitcoin to make your purchase.
Your decision to trade depends on your attitude to risk, your expertise in this market, the spread of your investment portfolio and how comfortable you feel about losing money.