Popular privacy coin Monero (XMR) has been on a rally since the start of 2022. The cryptocurrency appears to be moving on its own as the crypto market trends sideways.
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Recently, XMR bulls are displaying more strength. At the time of writing, XMR trades at $285 with a 6% profit in 24 hours, a 34% and 50% profit in the last two weeks and 30-days, respectively.
As announced by one of Moneroโs maintainers via a post, the network will undergo an upgrade on July 16th, 2022, at the height of block 2.6 million. The โFluorine Fermiโ update will introduce new features to the network.
As the developer stated, Monero will increase its ring size from 11 to 16. The ring size is a term to refer to the total number of signers in an XMR transaction. As part of this networkโs unique model, the update will provide users with more base privacy.
In addition, the network will implement an upgraded version of its Bulletproofs algorithm to decrease its transaction size by around 7%. This change is supposed to improve the networkโs scalability by making โevery transaction lighter and fasterโ.
On the latter, the network will reduce the walletโs sync time by around 30 to 40%, the post said, and will implement a change to Moneroโs fee model. Thus, users can expect to see an uptick in the networkโs โsecurity and resilienceโ.
As the update will be deployed via a Hard Fork, users and node operators will need to update their software. The maintainer made the following request to the users:
A new release will be announced before the network upgrade (around the 16th of June). You will only have to be using the updated software by the time the network upgrade occurs (16th July). To the end user, it will be like a simple software update.
#Monero will undergo a network upgrade on July 16th, 2022:https://t.co/9NKlGtqXAn
All users will need to do is keep their favorite wallet up to date, update their nodes once v0.18 is released (~June 16th), and enjoy even better digital cash afterwards ๐
โ Monero (XMR) (@monero) April 20, 2022
Could Monero Be Spelling Danger For The Crypto Market?
Itโs possible that Moneroโs recent price action is due to its upcoming network update. As mentioned, they are substantial and will provide the users with interesting new features.
Data from Material Indicators (MI) records an increase in buying pressure from retail investors during April. At the same time, investors with ask orders larger than $10,000 have been selling into the rally. Unless larger investors classes step in, XMR could be at risk of a short-term decrease.
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Additional data provided by Jarvis Labs indicates a potential danger for the entire crypto market. According to their โDino Indexโ (comprise of Ethereum Classic, Zcash, Litecoin, Bitcoin Cash, and others), a metric to track the performance of these assets to show their inverse correlation with the crypto market, there could be some obstacles ahead. Jarvis Labs said via their Telegram Channel:
Quite evident that majority of the time when these dino coins rise and btc rises, better to look at profit taking or hedging the risk and look for market tops.
