Monero coins have been in the spotlight for much of this year as the broader crypto market traded sideways.
At the time of writing, XMR was trading at $282.49, up 3.36% after reaching a 24-hour high of $288.82 before prices pulled back.
But why is the coin rising? This article explains the factors behind Monero’s recent price increase.
Why is Monero (XMR) rising?
Before examining the drivers behind the current price movement, it helps to briefly explain what Monero (XMR) is.
In short, Monero is the native token of the Monero blockchain, a privacy-focused cryptocurrency that enables confidential transactions using advanced cryptography. Monero was launched in 2014.
Below are the main reasons behind the recent rally.
“Fluorine Fermi” upgrade introduces new features
A key catalyst for the price increase is the announcement from Monero developers that the network will undergo an upgrade called “Fluorine Fermi.” The upgrade is scheduled to activate at block height 2.6 million on July 16.
Among the changes, the ring size—the total number of signers in an XMR transaction—will increase from 11 to 16, which enhances baseline privacy for users.
The network will also deploy an improved version of its bulletproof algorithm to reduce transaction size by around 7%, improving scalability and allowing for faster, lighter transactions.
According to the announcement, the upgrade will also cut wallet synchronization time by approximately 40%.
Users must update their software
A new release announcement with update instructions is expected before the network upgrade, around June 16. Users should update their wallets and nodes before the network activation on July 16.
#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 😎
— Monero (XMR) (@monero) April 20, 2022
The upgrade will occur via a hard fork, so node operators and users must install the updated software. For most end users, this will be a straightforward update to their wallets and clients.