Monero Price Falls Over 16% Following 51% Attack and 720-Block Deposit Requirement

Monero, a leading privacy-focused cryptocurrency, experienced a significant disruption in August 2025 when Qubic, an AI-powered blockchain and mining pool, claimed to have executed a 51% attack on the network. The event included a six-block reorganization, which raised alarms within the community and prompted exchanges like Kraken to freeze XMR deposits temporarily. To mitigate risks, Kraken reimposed a 720-block confirmation requirement for XMR deposits before resuming trading and withdrawals [1]. This incident underscored vulnerabilities in Monero’s decentralized consensus model and sparked urgent discussions around security enhancements and the resilience of its proof-of-work (PoW) mechanism [2].

The immediate aftermath of the attack saw a sharp market reaction, with Monero’s price dropping from approximately $300 to the mid-$250s, alongside a more than 20% decline in its market capitalization. The drop reflected investor concerns over the network’s susceptibility to repeated attacks and potential centralization risks. Analysts noted that such disruptions often trigger a “rotation effect,” where capital shifts from older, structurally challenged projects to newer ones offering fresh narratives and fewer vulnerabilities [1].

In the wake of the attack, the Monero community is exploring several potential solutions to strengthen network security. These include merge-mining with stronger PoW networks like Bitcoin, integrating ChainLocks—similar to those used in the Dash blockchain—to prevent reorg risks, and implementing localized mining strategies to reduce the economic incentives for attacks [1]. These measures aim to enhance the network’s resilience and restore investor confidence.

Long-term price projections for Monero hinge on the speed and effectiveness of these security upgrades. Analysts suggest that with timely protocol enhancements, the price could stabilize and gradually reclaim the $300 level. However, without meaningful improvements, the price may remain in the $200–$250 range for an extended period, reflecting ongoing uncertainty and reduced trust among investors [1].

The broader implications of the attack extend beyond Monero itself, influencing the entire privacy coin ecosystem. Regulators and exchanges have long scrutinized privacy-focused tokens due to concerns about their potential misuse in illicit activities. This incident is likely to intensify such scrutiny, potentially leading to further delistings or regulatory restrictions. For privacy coins to thrive long-term, they must balance privacy utility with cryptographic trust and robust decentralization [1].

In parallel, the attack has also spotlighted emerging opportunities in the cryptocurrency market. Some analysts have highlighted projects like MAGACOIN FINANCE, a presale token that has drawn attention for its capped supply, verified audits, and strong early-stage demand. Unlike legacy tokens struggling with structural issues, MAGACOIN enters the market with a clean slate and a narrative that aligns with retail investor interests. Analysts have described it as one of the top five early-stage opportunities in 2025 [1].

Monero now faces a critical juncture: either rebuild under new security frameworks or risk prolonged market marginalization. Investors who view privacy as a fundamental value proposition may see the price drop as an attractive entry point, provided the network implements rapid and effective defenses. Meanwhile, speculative capital is increasingly shifting toward emerging narratives with high growth potential, particularly presale tokens like MAGACOIN FINANCE, which position themselves as strong candidates for 2025’s altcoin momentum [1].

Source: [1] title: How Will the Recent 51% Attack on Monero Affect the Price in the Long-Term? (https://coinmarketcap.com/community/articles/68ae7b8a44504b4a1013b074/)