Monero's (XMR) business slows considerably as Crypto's investors ponder Forked Network status

The activity of Monero (XMR) has experienced a significant slowdown in the last year, with data from Monero Blocks showing that it has halved since the end of 2017.

In December of last year, the activity on the Monero network recorded an incredible 3.2 GB, which was its historical maximum. However, in October it reached only slightly more than 1.2 GB, the lowest detected since February 2017. According to block explorer data Monero Blocks, the average growth rate of Monero's blockchain is 1.79 GB.

Possible reasons for the downward trend

According to Crypto Briefing, a source of cryptocurrency news, a familiar source of the problem spoke with them, stating that the downward trend of Monero's business indicates a "definite" decline in trading activity. According to the source, this has been attributed to the strong price correction that has been going on for some time.

In addition to this, the source also accused the decline Monero block the growth of its aggression against ASIC mining platforms. Monero had a difficult fork in October, which modifies his hashing algorithm to prevent XMR ASICs from doing mining operations. In an email to Crypto Briefing, the source said that:

"The forks of Monero to extract the miners ASIC drastically reduce the hashrate of the network and often the price follows the hashrate".

ShapeShift's decision, which is one of the most popular cryptocurrency exchanges for Monero users, to begin submitting users to KYC controls may also have contributed to Monero trouble. The platform began conducting basic controls in mid-September to comply with US law. On this point, the source told Crypto Briefing that:

"Monero is often the winning currency for anonymity transactions and Shapeshift has been a popular exchange for value exchange in Monero …. However, Shapeshift is moving towards KYC and Monero users generally do not like them."

In November, the growth of the block of Monero is 361 MB. Experts believe that the currency could maintain this growth, probably hitting 700 MB by the end of the month, which is still low considering it has reached incredible figures in December of last year.