Monero Price Plunges After Qubic’s 51% Takeover, Can XMR Recover?

2025-08-13

The Monero price drop has shaken the privacy coin’s community after news broke that Qubic had achieved a 51% control of Monero’s hashrate.

This event, known in blockchain circles as a potential 51% attack, has raised concerns about network security, transaction validity, and market sentiment.

While the short-term impact has been negative, with XMR seeing an accelerated sell-off, some traders believe the door remains open for a bullish recovery.

What Qubic’s 51% Control Means for Monero

Qubic’s sudden dominance over Monero’s mining power, surpassing 52% of total hashrate, sparked fears of potential double-spending or transaction censorship.

In simple terms, when a single entity controls more than half of a blockchain’s hashrate, they can theoretically reorganize the chain, reject blocks, or manipulate transaction order.

Qubic claims this was a “stress test” rather than a malicious takeover. Their mining pool reached approximately 3.01 GH/s by incentivizing CPU mining through their Useful Proof-of-Work model, offering miners higher payouts compared to traditional pools.

This payout structure quickly attracted a large share of Monero’s miners, enabling Qubic to surpass the 50% threshold.

How the 51% Event Sparked Selling Pressure

The headline of “Monero 51% attack” was enough to spook many holders.

Blockchain data shows an immediate spike in exchange inflows, with around $740,000 worth of XMR moving from private wallets to exchanges. This shift often signals potential selling pressure, as traders prepare to offload their holdings.

The sell-off was compounded by Monero’s already fragile short-term performance. While XMR remains up over 75% year-on-year, recent weeks have seen pullbacks, making the market more sensitive to negative news. The stress-test announcement provided an additional catalyst for short-term bears.

Opportunities move fast in crypto, but informed users move faster. Keep up with the newest trends and tools by reading the Bitrue Blog today.

Why Bulls Still Have a Chance

Despite the sharp XMR/USDT price drop, several on-chain and derivatives indicators suggest the market could see a rebound.

Short-heavy positioning: Data shows $7.52 million in short liquidations compared to $4.5 million in longs, indicating a bearish overcrowding. This makes the market ripe for a short squeeze — a sharp rally caused by bears being forced to buy back at higher prices.
Exchange outflow potential: If net flows shift from inflows back to outflows, available supply on exchanges tightens, reducing immediate sell pressure.
Technical support zones: Monero’s price is hovering near support. If XMR holds above these levels and breaks the $280–$288 resistance zone, it could trigger a rapid bullish move.

Market Reactions and Developer Pushback

While Qubic described the event as a successful 51% takeover, Monero developers and blockchain experts have pushed back.

Some argue the six-block chain reorganization that occurred could simply have been the result of temporary mining luck, not necessarily a sustained attack.

Luke Parker, lead developer at SeraiDEX, noted that a reorg alone doesn’t confirm malicious intent.

However, cybersecurity experts like Zhong Chenming countered that in theory, Qubic now has the ability to rewrite transactions or block them entirely, powers associated with a true 51% attack.

Caution Reminder for Monero Investors

The Monero 51% attack headlines highlight the centralization risks in proof-of-work mining when one pool or entity offers outsized incentives.

Even without direct malicious action, prolonged hashrate dominance can undermine confidence in a privacy-focused network.

Investors should monitor:

Qubic’s share of Monero hashrate — if it stays above 50% for long, risks remain elevated.
Network developer responses — any protocol-level changes to reduce centralization risks.
Exchange liquidity trends — sustained inflows could indicate ongoing sell pressure.

Given Monero’s role as a leading privacy coin, its resilience in the face of this event will be closely watched by both traders and blockchain security analysts.

Conclusion

The Monero price drop following Qubic’s 51% takeover has sparked a heated debate in the crypto community. While fears of network manipulation are valid, it’s important to note that the event was framed as a stress test and not an outright hostile attack.

The coming weeks will be crucial, if hashrate dominance declines and bullish catalysts emerge, XMR could stage a notable recovery.

Until then, traders should balance caution with the recognition that volatile situations often create both risks and opportunities.

Maximize your potential and minimize the guesswork with reliable insights and expert content. Discover what’s next on your crypto journey at Bitrue, register now!

FAQ

What is a 51% attack in cryptocurrency?

A 51% attack occurs when a single entity controls over half of a blockchain’s mining or staking power, allowing potential transaction manipulation or censorship.

Did Qubic really attack Monero?

Qubic claims its 51% control was a planned “stress test” rather than a malicious attack, but some experts warn that such dominance still carries significant risks.

How much did Monero’s price drop after the event?

Monero fell by roughly 8–9% following the announcement, though the decline also coincided with broader selling pressure in the crypto market.

Can Monero recover from this price drop?

Yes, recovery is possible if Qubic’s hashrate share falls, short positions get squeezed, and buyers regain confidence at key support levels.

Why is hashrate centralization dangerous for Monero?

Centralized mining power undermines decentralization, a key security feature of blockchains, and increases the risk of transaction manipulation.

monero-xmr

Disclaimer: The content of this article does not constitute financial or investment advice.

Join Bitrue for exclusive rewards