Regulatory bodies are aware that cryptocurrencies with built-in privacy technologies are difficult to trace. Consequently, limitations are imposed to discourage the wider adoption of such cryptocurrencies, like Monero.

Moreover, cryptocurrencies are designed for specific purposes. Those who value versatility and innovation tend to prefer smart-contract-focused cryptocurrencies. It's evident that some individuals conscientiously prioritize their privacy, making Monero a suitable choice for them. Each coin serves a distinct purpose, and users are at liberty to select what aligns with their needs.

Given this, popularity shouldn't necessarily be a significant factor to consider.