Zcash (ZEC) has surpassed Monero (XMR) in market capitalization for the first time in seven years, pointing to a change in the privacy coin landscape. According to CoinMarketCap, Zcash now commands a $7.9 billion market capitalization, compared to Monero's $6.9 billion, driven by regulatory changes, institutional players, and revitalized market confidence.
At the time of writing, Zcash trades above $511.93, bouncing off a support trendline formed by connecting the lows of October 17 and 23.
The rebound targets the $684 peak from Monday as it surfaces above the 50-day EMA. The trend momentum on the 4-hour chart experiences a decline in selling pressure as MACD reverts to the signal line, aiming for a crossover which would indicate a resurgence in buying pressure.
The RSI rebounds to 48, a shift to sell-side dominance to neutral levels. If RSI extends above the midpoint line, it would signal an increase in buying pressure.
ZEC may find support at the rising trendline near $450, followed by the 200-day EMA at $379.
Zcash's opt-in privacy feature was historically seen as a step behind Monero's total privacy solution. Zcash offers users the option to choose either transparent or shielded (sometimes referred to as 'private' or 'anonymous') transactions.
Monero, in contrast to Zcash, definitely has features that mandate total privacy of the transaction record such as ring signatures with transferrable stealth addresses.
Zcash's opt-in privacy feature was once seen as a liability, but it is now a tremendous advantage. Major exchanges will still hold Zcash when regulators push for Anti-Money Laundering compliance.
Monero's grip on the market ultimately eased in mid-2025 when an AI-enabled miner coordinated on the Qubic network resulting in a 51% attack on Monero to reorganize blocks and expose weaknesses in its mining framework.
Alongside this, Monero's liquidity vanished following delistings by exchanges such as Binance, OKX, and Huobi, leaving it stranded from institutional markets.
Now, analysts view Zcash as a friendly alternative that can operate around compliance guidelines while preserving user privacy.
A major catalyst for Zcash’s latest rally came from the Winklevoss twins, who invested over $50 million to rebrand Nasdaq-listed Leap Therapeutics as Cypherpunk Technologies (CYPH), a new Zcash treasury firm.
The company now holds 203,775 ZEC, about 1.25% of the total supply, and aims to accumulate up to 5%.
The announcement sparked a 200% monthly surge in ZEC, pushing prices above $500, with technical indicators suggesting continued bullish momentum toward the $684 resistance level.
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Former BitMEX CEO Arthur Hayes has endorsed Zcash, calling it the “clean privacy bet” and projecting a long-term price target of $10,000.
His argument centers on ZEC’s ability to offer anonymity without breaching compliance, a feature that appeals to funds navigating stricter global regulations.
Grayscale’s Zcash Trust (ZCSH) posted a 90% return in September, while open interest in ZEC futures hit $863.24 million, suggesting institutional participation.
Zcash’s momentum is not just speculation based. The Electric Coin Company (ECC) recently announced a roadmap for 2025 that details several important updates.
The roadmap concentrates on simplifying privacy for mainstream users with ephemeral addresses for every swap through the NEAR Intents protocol, with automatic address rotation going once the funds are received, and hardware resynchronization support for Keystone wallets.
The roadmap includes multisignature Pay-to-Script-Hash (P2SH) transactions to enhance the security of developer funds. The ECC had indicated that over 30% of the total ZEC supply is currently contained in shielded pools, which is indicative that privacy feature adoption is catching up to the speculation in the market.
As governments expand data-sharing and digital ID programs, investors are seeking assets that preserve financial autonomy while upholding regulatory legitimacy.
Market data shows ZEC up nearly 1,000% year-to-date, while Monero has gained just 11.5%.
Experts note that Zcash’s ability to operate in regulated markets positions it as the go-to privacy asset for institutions, unlike Monero, which remains restricted in these markets.