Crypto Markets Today/Markets
Crypto Markets Update: XMR Surges Following Major Blockchain Reorganization
Bitcoin faces challenges as it falls below $116,000, with significant movements of funds into ether as whales adjust their positions.
1 min read
Key Insights
Leading privacy coin Monero (XMR) increased to a near two-month peak of $333 early Monday, even as its blockchain experienced a significant 18-block reorganization that reversed over 100 transactions. This incident highlights issues of centralization within proof-of-work blockchains that can lead to data manipulation.
On the other hand, Bitcoin struggled, failing to maintain a position above $116,000 during the weekend, while market participants shifted more resources toward Ether. The overall crypto market also took a hit, with the CoinDesk 20 Index plummeting by over 3% to 3,239 points within just 24 hours.
Derivatives Market Movement
- The leading 25 coins have observed a decrease in futures open interest (OI) recently, with certain meme coins like DOGE, PEPE, and FARTCOIN witnessing significant capital exits.
- BTC’s global futures OI fell to 720K BTC, down from the previous record approximate of 744K BTC last week. The total market OI dropped to $90 billion from $95 billion over the weekend.
- ETH’s futures open interest rose to over 14 million ETH, indicating capital inflows, albeit not suggesting a bullish outlook as selling pressure remains evident.
- Activity in futures traded at the CME shows signs of intensification, with OI rising to 141.69K BTC, signaling market expectations of Federal Reserve rate cuts ahead.
Token Developments
- Monero’s blockchain faced its deepest-ever reorg on Monday, rolling back 18 blocks. This reorganization entails nodes abandoning part of the existing blockchain in favor of one with longer proof-of-work.
- The disruption resulted in a rollback of approximately 36 minutes of transaction history, raising security concerns over the network amidst an ongoing battle for dominance in its mining power by the Qubic blockchain.
- Such disruptions prompt thoughts among analysts regarding the long-term security and viability of networks vulnerable to such attacks. XMR continues to trade around $304 with daily trading volume increasing by 78% to $136 million despite earlier negative sentiments.
