Monero (XMR) has just activated its second beta stressnet for FCMP++ and CARROT—an upgrade suite regarded by the community as the network’s most significant leap in privacy in years—while XMR continues to trade around $400 after hitting an all-time high of nearly $800 in January 2026.
The launch of the new testnet is prompting the market to question whether the privacy narrative could make a comeback, especially as XMR gradually recovers from a sharp decline in early February.
XMR Still Sits Below ATH
XMR is currently trading around $403–$404 at the time of writing, nearly 50% lower than its all-time high of approximately $799 set in mid-January 2026, according to TradingView data.
XMR price chart (D). Source: TradingView
Monero’s surge at the beginning of the year occurred amidst capital flowing back into highly decentralized assets, particularly those tied to privacy and self-custody. However, that momentum quickly reversed as the market entered a period of sharp correction.
After a deep drop to the sub-$300 range in February, XMR largely traded sideways for several weeks before recovering gradually starting in late April. The current chart shows the price holding above the $380–$400 zone—an area that previously acted as short-term resistance during the earlier recovery phase.
Unlike many mid-cap altcoins that often fluctuate heavily according to Bitcoin or meme coin rotations, Monero tends to react more clearly to catalysts directly related to privacy and network infrastructure.
This makes the FCMP++ upgrade a notable catalyst for XMR, as this upgrade directly impacts Monero’s core narrative rather than just focusing on performance or throughput.
Why FCMP++ Is a Major Upgrade for Monero
On May 7, Monero’s official account confirmed that the second beta stressnet for FCMP++ and CARROT is live and called on the community to participate in testing ahead of the next deployment phases.
The second testnet (beta stressnet) for Full-Chain Membership Proofs (FCMP++) and CARROT is live!
We implore the Monero community to participate in testing and to report issues in order to ensure a smooth transition! https://t.co/f1s8FvJsaV
— Monero (XMR) (@monero) May 6, 2026
FCMP++, which stands for Full-Chain Membership Proofs, is considered one of the biggest changes to Monero’s privacy model in years. According to the project, this upgrade aims to expand the anonymity set and improve the ability to conceal transaction history on a larger scale compared to the current ring signatures mechanism.
Meanwhile, CARROT is part of a new architecture designed to work in tandem with FCMP++.
For Monero, changes directly related to the privacy layer often hold much greater significance than for blockchains focused primarily on throughput or transaction speed. The value of XMR has historically been tied to the network’s ability to maintain fungibility and privacy, especially as many countries increase surveillance of crypto transactions and several major exchanges have delisted privacy coins in recent years.
Consequently, the market often monitors progress related to Monero’s privacy stack more closely than many other blockchains. However, FCMP++ is currently not yet a full mainnet upgrade, but is in the testing and audit phase.
XMR Is Recovering, But Liquidity Still Matters
The fact that many major exchanges have restricted or delisted privacy coins over the past few years due to regulatory pressure continues to directly affect XMR. This has caused the token’s liquidity to be significantly more fragmented than many other large-cap assets in the market.
XMR market cap chart. Source: TradingView
Nevertheless, XMR maintains a market capitalization of about $7.4–$7.6 billion and a 24-hour trading volume around $140 million, while the circulating supply currently stands at approximately 18.4 million XMR, according to CoinMarketCap data.
Despite no longer appearing frequently in short-term speculative narratives like AI or meme coins, Monero still maintains steady interest from a user group focused on privacy and self-custody.
What Could Drive the Next XMR Move
For XMR, the market is currently not only watching testnet updates but also whether FCMP++ can move closer to actual mainnet deployment.
If Monero continues to complete audit phases, stress testing, and development milestones in the coming months, the privacy narrative around XMR could begin to heat up again—especially as privacy becomes a topic of greater interest within crypto.
Conversely, any major delays in the roadmap or technical issues related to FCMP++ could cause XMR to continue trading in the current sideways range instead of quickly regaining momentum as it did at the beginning of the year.
Currently, the market seems to view FCMP++ more as a potential catalyst than a factor already fully reflected in the price. For Monero, the bigger question lies not just in a short-term rally for XMR, but in whether the network can continue to maintain its position as one of the largest privacy-focused ecosystems in the market as regulatory pressure on privacy coins grows.
