- Monero’s price slump follows the closure of a major darknet market and an ongoing network attack.
- Qubic mining pool’s control threatens Monero’s blockchain integrity and miner participation.
- The network’s recovery options appear few, raising questions about its long-term stability.
Monero (XMR) is trading at $255.82, down 6.73% in the past 24 hours and 13% over the past week. The slide comes as the privacy-focused cryptocurrency faces two major setbacks. The first was the shutdown of the largest darknet marketplace, wiping out thousands of daily transactions and cutting into Monero’s activity.
Supporters see the drop as a short-term reaction, stressing that the project’s true strength lies in its ability to allow private transactions beyond government oversight. They point to the network’s role in building a foundation for a financial system where users can transact without interference, even if short-term price movements are volatile.
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Network Under 51% Attack
The bigger shock came from Charles Guillemet, chief technology officer at Ledger, who reported that the network is in the middle of what appears to be a successful 51% attack. The Qubic mining pool has been quietly amassing hashrate for months and now controls a majority of the network’s mining power.
Such control enables Qubic to modify the blockchain, prevent some transactions, and execute double-spend assaults. A significant chain reorganization identified earlier this day was an indication of the severity of the matter. It is estimated to cost around $75 million per day to maintain such control, but the potential revenue and power may compensate for the cost.
For the small miners, things are dire. Qubic can just abandon their blocks and take away any reason to continue mining. We are seeing a $300 million mining industry dominating a $6 billion network with the potential to shatter faith in Monero virtually overnight.
Monero’s Future in Question After Major Network Attack
Arthur Breitman, co-founder of Tezos, noted that the network is one of the last major proof-of-work blockchains. Its decentralized nature, while a strength, makes coordinated action, such as a shift to proof-of-stake, much harder. This lack of formal governance could slow any urgent response.
Breitman suggested possibilities like merge-mining with Litecoin but acknowledged that proof-of-work remains a core belief for many in the Monero community. While the project still holds a meaningful place in the market, some question the extent of its privacy protections.
With the price down but not collapsing, Monero’s next moves will be decisive. How it handles the coming days will determine if it can restore security and trust, or if this becomes one of the most damaging network attacks in cryptocurrency history.
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