Monero’s Resilient Surge: TRM Labs Reveals Stable On-Chain Activity Despite Regulatory Pressure

BitcoinWorld Monero’s Resilient Surge: TRM Labs Reveals Stable On-Chain Activity Despite Regulatory Pressure Blockchain analytics firm TRM Labs has unveiled a surprising finding about Monero’s resilience in 2025, revealing that the privacy-focused cryptocurrency maintains stable on-chain transaction activity despite facing significant exchange delistings and regulatory scrutiny throughout the past two years. This comprehensive analysis, published in San Francisco on March 15, 2025, demonstrates how Monero’s ecosystem continues to evolve in unexpected ways, particularly within high-risk digital environments where privacy remains paramount. Monero’s On-Chain Stability Defies Exchange Delistings TRM Labs’ latest blockchain intelligence report presents compelling evidence about Monero’s transaction patterns. The firm’s researchers discovered that Monero’s on-chain activity remained broadly stable throughout 2024 and 2025, maintaining levels significantly higher than those observed before 2022. This stability persists despite major cryptocurrency exchanges implementing restrictions against the privacy coin. Specifically, platforms like Binance and Coinbase have either delisted Monero entirely or imposed severe trading limitations in numerous jurisdictions. Consequently, analysts expected a substantial decline in network usage. However, the data reveals a different narrative altogether. The report’s authors employed sophisticated blockchain forensic techniques to track transaction volumes and network participation. They examined daily transaction counts, transaction value distributions, and network growth metrics across multiple time periods. Their methodology included comparing pre-2022 baselines with current activity patterns while accounting for seasonal fluctuations and broader market trends. The findings indicate that Monero’s user base has adapted to exchange restrictions by utilizing alternative trading methods and decentralized platforms. Furthermore, the network’s fundamental privacy features continue to attract dedicated users who value financial confidentiality above exchange convenience. Technical Analysis of Transaction Patterns TRM Labs’ technical team analyzed several key metrics to assess Monero’s health. They monitored daily transaction counts, which remained consistently between 15,000 and 25,000 throughout the observation period. Additionally, they examined transaction size distributions, noting that both small and large transactions maintained stable proportions. Network hash rate, a measure of mining security, also showed remarkable stability despite market volatility affecting other cryptocurrencies. These technical indicators collectively suggest a robust and dedicated user community that continues to utilize Monero’s blockchain for various purposes. Ransomware Payment Preferences: Monero vs. Bitcoin The TRM Labs investigation provides crucial insights into cryptocurrency usage within ransomware operations. While ransomware groups consistently express preference for Monero due to its enhanced privacy features, the majority of actual ransom payments continue to flow through Bitcoin. This apparent contradiction stems from several practical considerations affecting both attackers and victims. Ransomware operators typically request Monero payments in their initial communications and instructions. However, victims often lack immediate access to XMR or face difficulties acquiring it quickly during high-pressure situations. Bitcoin’s broader availability on mainstream exchanges and greater public familiarity make it the default choice for many victims seeking to resolve attacks swiftly. The report documents that approximately 65-70% of ransomware payments in 2024-2025 occurred via Bitcoin, despite operators’ stated preferences. This payment dichotomy highlights the tension between ideal operational security practices and practical realities within cybercrime ecosystems. Security researchers note that this pattern has remained consistent for several years, suggesting fundamental structural factors rather than temporary trends. Ransomware Payment Methods Comparison (2024-2025) Cryptocurrency Operator Preference Actual Payment Share Primary Reasons Monero (XMR) High 30-35% Enhanced privacy, difficult tracing Bitcoin (BTC) Low 65-70% Wider availability, victim familiarity Law Enforcement Perspectives Financial crime investigators from multiple agencies have commented on these findings. They acknowledge that while Monero presents greater investigative challenges, Bitcoin’s transparent blockchain often provides crucial evidence in ransomware cases. The traceability of Bitcoin transactions has enabled numerous successful investigations and asset recoveries in recent years. Consequently, some security experts speculate that ransomware groups’ preference for Monero represents an aspirational goal rather than an operational reality, as victims’ practical constraints frequently override attackers’ preferences. Darknet Market Adoption: Monero-Only Platforms Rise TRM Labs identified a significant trend within darknet marketplaces that explains part of Monero’s sustained activity. Approximately half of new darknet markets launched in 2025 exclusively support Monero payments, rejecting Bitcoin and other cryptocurrencies entirely. This represents a substantial increase from previous years when most platforms offered multiple cryptocurrency options. Market administrators cite enhanced operational security as their primary motivation for this shift. They aim to reduce blockchain analysis risks and protect both vendor and customer identities. The proliferation of Monero-only markets creates a self-reinforcing ecosystem where users must acquire and utilize XMR to participate. This requirement drives consistent demand for Monero within specific communities, regardless of mainstream exchange availability. Key characteristics of these Monero-exclusive markets include: Enhanced privacy protocols: Additional encryption and anonymity layers beyond standard darknet market practices Smaller user bases: Typically fewer than 10,000 active users compared to larger multi-currency markets Higher security focus: Increased emphasis on operational security over convenience features Specialized offerings: Often focusing on specific high-risk product categories This specialized adoption demonstrates Monero’s growing niche within certain digital underground economies. While representing a small portion of overall cryptocurrency usage, these markets contribute meaningfully to Monero’s transaction volume and network health. Blockchain analysts note that activity from these sources appears distributed across many small transactions rather than concentrated in large transfers, making patterns less conspicuous. Regulatory Environment and Exchange Responses The regulatory landscape for privacy-focused cryptocurrencies has intensified significantly since 2023. Multiple jurisdictions have implemented stricter regulations regarding privacy coins, citing concerns about potential misuse for illicit finance. These regulatory developments prompted major exchanges to reassess their support for Monero and similar assets. Binance announced phased delistings across numerous countries beginning in early 2024, while Coinbase restricted Monero trading for most non-institutional users. Other platforms followed similar paths, creating substantial challenges for mainstream Monero accessibility. Despite these restrictions, Monero’s development community and user base implemented various adaptation strategies. Decentralized exchanges (DEXs) supporting atomic swaps reported increased Monero trading volumes. Peer-to-peer trading platforms also saw growth in XMR markets. Additionally, some regional exchanges in jurisdictions with more permissive regulations expanded their Monero offerings. These alternative channels appear sufficient to maintain liquidity and accessibility for determined users, though often with less convenience and higher transaction costs than previously available through major centralized exchanges. Industry Expert Analysis Cryptocurrency compliance specialists have analyzed TRM Labs’ findings within broader industry context. They note that Monero’s stability despite exchange restrictions demonstrates the resilience of decentralized cryptocurrency networks. When core communities value specific features—in this case, financial privacy—they often find ways to maintain usage despite external pressures. However, experts also caution that sustained regulatory scrutiny could eventually impact Monero’s long-term viability if accessibility challenges significantly increase for ordinary users. The coming years will likely test whether current adaptation mechanisms prove sufficient for sustained ecosystem health. Technological Developments and Network Upgrades Monero’s development team has continued advancing the protocol throughout this period of regulatory pressure. Several network upgrades implemented between 2023 and 2025 enhanced privacy features and improved transaction efficiency. These technological improvements likely contributed to sustained user engagement despite external challenges. Key upgrades included bulletproofs+ implementation for more efficient confidential transactions, view tag improvements for faster wallet synchronization, and ongoing work on Seraphis, the next-generation transaction protocol. These developments demonstrate the project’s continued technical vitality and commitment to its core privacy mission. The Monero community has also expanded educational resources and user guides for acquiring and utilizing XMR without major exchanges. These resources help new users navigate the increasingly complex landscape of privacy-preserving cryptocurrency usage. Community-developed tools for decentralized trading and improved wallet interfaces have lowered barriers for non-technical users seeking alternatives to delisted exchange options. This grassroots support infrastructure plays a crucial role in maintaining network activity during periods of mainstream platform restriction. Conclusion TRM Labs’ comprehensive analysis reveals Monero’s unexpected resilience in the face of significant exchange restrictions and regulatory scrutiny. The privacy-focused cryptocurrency maintains stable on-chain activity levels that exceed pre-2022 measurements, demonstrating dedicated community support and effective adaptation strategies. While ransomware operators prefer Monero for theoretical privacy advantages, practical constraints keep Bitcoin dominant for actual payments. Meanwhile, growing adoption within specialized darknet markets creates sustained demand within specific ecosystems. These findings illustrate the complex dynamics shaping privacy cryptocurrency usage as regulatory environments evolve. Monero’s continued activity suggests that dedicated user communities can maintain cryptocurrency networks through alternative channels when they value core features sufficiently, though long-term sustainability questions remain as regulatory pressures continue mounting. FAQs Q1: Why did TRM Labs study Monero’s on-chain activity? TRM Labs, as a blockchain analytics firm, regularly monitors various cryptocurrency networks to understand usage patterns, security implications, and regulatory compliance issues. Their Monero study specifically aimed to assess how exchange delistings affected network activity and to document current usage patterns in various contexts. Q2: How does Monero maintain stable activity despite exchange delistings? Monero users have adapted to exchange restrictions by utilizing decentralized exchanges, peer-to-peer trading platforms, and regional exchanges in more permissive jurisdictions. The dedicated Monero community has also developed improved tools and educational resources for acquiring and using XMR without major centralized platforms. Q3: Why do ransomware groups prefer Monero but mostly receive Bitcoin payments? Ransomware operators prefer Monero for its enhanced privacy features but often receive Bitcoin payments because victims typically find Bitcoin more accessible during high-pressure situations. Bitcoin’s wider availability on mainstream exchanges and greater public familiarity make it the practical choice for many victims despite attackers’ preferences. Q4: What are Monero-only darknet markets? Monero-only darknet markets are illicit online marketplaces that accept exclusively Monero payments, rejecting Bitcoin and other cryptocurrencies. Approximately half of new darknet markets in 2025 adopted this model to enhance operational security by reducing blockchain analysis risks associated with more transparent cryptocurrencies. Q5: How have Monero’s technical developments continued during regulatory pressure? The Monero development team has implemented several network upgrades between 2023 and 2025, including bulletproofs+ for more efficient confidential transactions, view tag improvements for faster synchronization, and ongoing work on the next-generation Seraphis protocol. These technological advancements demonstrate continued project vitality despite external challenges. This post Monero’s Resilient Surge: TRM Labs Reveals Stable On-Chain Activity Despite Regulatory Pressure first appeared on BitcoinWorld .