Monero Network Hit by 51% Attack as XMR Price Dips 17%

Monero’s decentralized network was recently compromised by a 51% attack led by the Qubic mining pool, triggering a sharp decline in the XMR price and raising concerns over the cryptocurrency’s long-term security. The attack, confirmed by cybersecurity firm SlowMist, saw Qubic accumulate over 50% of the network’s hashrate, enabling it to rewrite blockchain history and execute double-spend attacks [1]. The sudden shift led to a major chain reorganization, signaling a successful breach of the network’s consensus mechanism [2].

The Qubic mining pool had reportedly been building its dominance over Monero’s hashrate for months, a move that went largely unnoticed until it surpassed the critical 51% threshold [3]. Ledger’s chief technology officer estimated that sustaining the attack would cost approximately $75 million per day, highlighting the massive financial resources required to maintain such control [4]. The imbalance in mining power left Qubic with the ability to effectively censor transactions and undermine the network’s trustless properties [5].

Despite the attack, the Monero community mobilized quickly to counter the threat. Coordinated miner boycotts and redirection efforts reduced Qubic’s hashrate from nearly 45% to under 14% within hours, according to data cited by AlvaApp [6]. This rapid response demonstrated the power of social coordination in defending against centralization. However, the damage to market sentiment was already done. XMR prices fell 17% over a week, reflecting growing investor anxiety and uncertainty about the network’s future resilience [7].

Monero, a privacy-focused cryptocurrency with a market capitalization of around $6 billion, now faces questions about the sustainability of its proof-of-work consensus model. Analysts warn that low mining rewards leave the network particularly vulnerable to future 51% attacks unless economic incentives for miners are strengthened [8]. The current situation also highlights the fragility of smaller blockchains that rely on niche communities and limited liquidity [9].

Developers and community leaders are now under pressure to implement protocol-level changes that can prevent the concentration of mining power in the hands of a single entity. Such measures could include adjusting mining algorithms, introducing slashing conditions, or exploring alternative consensus mechanisms. Without these steps, Monero may struggle to maintain its reputation as one of the most private and secure blockchains [10].

The broader cryptocurrency market has so far shown no major reaction to the incident, with no significant price movements reported for other major digital assets. However, the event serves as a stark reminder of the risks associated with network centralization, particularly in privacy-oriented coins that prioritize anonymity over decentralization [11].

Source:

[1] Wu Blockchain (@WuBlockchain) August 12, 2025

[2] Wu Blockchain (@WuBlockchain) August 12, 2025

[3] Wu Blockchain (@WuBlockchain) August 12, 2025

[4] Wu Blockchain (@WuBlockchain) August 12, 2025

[5] Wu Blockchain (@WuBlockchain) August 12, 2025

[6] AlvaApp

[7] CoinGecko

[8] Ledger’s Chief Technology Officer

[9] Blockonomi

[10] Blockonomi

[11] Blockonomi