• A suspicious $330.7 million Bitcoin transfer was swapped for Monero, according to on-chain researcher ZachXBT, likely triggering the privacy coin’s 40% price surge as the hacked funds were laundered through exchanges.
• Limited liquidity due to past exchange delistings amplified the impact of this large purchase, causing the significant price volatility.

The cryptocurrency market witnessed a curious surge in the price of Monero (XMR) early Monday, with the privacy-focused coin spiking as much as 40%. While initial market observers struggled to pinpoint a catalyst, on-chain sleuth ZachXBT has offered a compelling explanation: a significant hack potentially fueled the rally.   

According to ZachXBT, a substantial 3,520 Bitcoin (BTC), valued at a staggering $330.7 million, was suspiciously transferred from an address and subsequently swapped for Monero. This massive conversion suggests a deliberate attempt to obfuscate the trail of the stolen funds, leveraging Monero’s inherent privacy features. The researcher’s findings strongly indicate that the price surge was directly linked to these laundering activities, likely executed through multiple instant cryptocurrency exchanges.  

Further amplifying the impact of this large-scale acquisition of Monero was the coin’s limited liquidity. Over the past few months, several major cryptocurrency exchanges have delisted XMR in response to increasing regulatory scrutiny and efforts to combat illicit activities on dark net markets. This reduction in available trading volume meant that a buy order of this magnitude would inevitably create significant upward pressure on the price, resulting in the dramatic spike observed. Market data corroborates this theory, showing a notable increase in buy orders within the XMR-BTC order book coinciding with the price surge.

Interestingly, traditional on-chain metrics such as active wallets and overall network activity did not show a corresponding increase, further suggesting that the price movement was driven by this specific, unusual transaction rather than organic market demand. The comparatively shallow order depth for Monero, as highlighted by CoinGecko data, underscores its vulnerability to significant price fluctuations when large orders are placed.

As of the latest data, Monero is trading above the $300 mark, reflecting the impact of this sudden buying pressure. While the price may stabilize in the coming days, ZachXBT’s findings serve as a stark reminder of how illicit activities can inadvertently influence cryptocurrency markets, particularly for privacy-focused coins with lower liquidity. This incident also highlights the crucial role of on-chain analysis in uncovering potentially nefarious activities and providing clarity amidst market volatility. The extent of the hack and the subsequent movement of funds will undoubtedly remain a key area of focus for blockchain investigators and market participants alike.