Monero, one of the world’s most valuable privacy-focused networks, is experiencing significant selling pressure. The native currency, XMR, has declined 11% from this week’s highs, expanding on the losses seen since June 2024.
Despite this, XMR continues to maintain a bullish trend, recovering from weaknesses observed in Q1 2024. During that period, the coin had faced a downturn due to compliance issues. Several exchanges, such as Binance, opted to delist Monero and other privacy coins, citing the need to adhere to regulations, particularly in the United States.
Nevertheless, the Monero community remains optimistic amid the recent sell-off. On August 20, Monero developers announced a pull request for the integration of Full-Chain Membership Proofs (FCMP++). This feature is designed to enhance Monero’s privacy capabilities, appealing to users who prioritize on-chain transaction concealment.
Previously, Monero relied on Ring signatures to disguise the sender’s identity. This method obfuscates each transaction, making it appear as though it could have come from a group of potential senders, unlike Bitcoin, where the sender is easily identifiable. With the integration of FCMP++, Monero takes transaction privacy a step further. Technical data indicates that this enhancement will make proving the output spent in a transaction—and thereby identifying the sender—considerably more difficult.
Developers assert that FCMP++ will increase the current anonymity set from 16 to 100 million. This advancement would make it exceptionally challenging for third parties, including analytics firms like Chainalysis, to trace XMR transactions, providing an elevated level of confidentiality for users who value privacy.
Despite these promising developments, the FCMP++ integration is still a work in progress. Following the pull request, the relevant code must undergo a thorough review and potential improvements. The goal is to ensure the absence of any code flaws. Once finalized, this feature is expected to set a new benchmark for privacy, reinforcing Monero’s leadership in the sector.
The completion timeline for integrating FCMP++ on the mainnet remains uncertain. However, it is evident that XMR bulls are showing resilience despite the drop in liquidity due to recent delistings. The determination of Monero developers to not capitulate to exchange pressure signifies that their mission remains resolute. Enthusiasts, therefore, will likely continue to use the network, underscoring its enduring significance in the realm of privacy-focused cryptocurrencies.
