Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnSquareMore
Monero Gains, Zcash Struggles In Privacy Coin Shake-up

Monero Gains, Zcash Struggles In Privacy Coin Shake-up

CointribuneCointribune2025/11/28 21:57
By:Cointribune
Summarize this article with:
ChatGPT Perplexity Grok

Monero (XMR) gained more than 23 % this week, while Zcash (ZEC) dropped by nearly 25 %. Such a gap highlights the high volatility of the privacy coins market, in a context of low activity related to Thanksgiving. This divergence between two key privacy assets raises questions about the internal dynamics of the sector.

Monero Gains, Zcash Struggles In Privacy Coin Shake-up image 0 Monero Gains, Zcash Struggles In Privacy Coin Shake-up image 1

In Brief

  • Monero (XMR) recorded a spectacular 23 % increase over the week, against the trend of the rest of the crypto market.
  • This performance is mainly driven by speculation on derivative markets, notably perpetual contracts.
  • Technical indicators show a mismatch between futures activity and spot market, suggesting a fragile rise.
  • Zcash (ZEC), on the other hand, collapsed by nearly 25 %, raising questions about the project’s solidity.

Monero Rises Sharply

While the entire privacy coins sector fell by nearly 40 % this week, Monero stands out as an exception. The crypto XMR rose by more than 23 %, a surge that intrigues in an otherwise bleak context.

This increase appears largely fueled by futures markets. The cumulative bid-ask volume delta on futures remains positive, while that of the spot remains stable. In other words, this bullish dynamic is supported by heavy speculation via derivatives, notably perpetual contracts, rather than organic demand on the spot market.

Several technical factors help explain this timely performance of Monero, out of sync with the rest of the privacy coins :

  • Persistent selling pressure on the spot market, with little support from typical buyers ;
  • A positive imbalance on perpetual markets, signaling a push fueled by leverage ;
  • Rising cumulative volume on futures, according to on-chain data, contrasting with relatively stable spot volume;
  • A daily increase of 4.1 %, while Dash lost 7.3 % and Zcash 4.4 % ;
  • No identifiable fundamental impetus (partnership, technological announcement), confirming the speculative nature of the rise.

Indeed, Monero attracted attention this week not because of an innovation or renewed interest in its technology, but because it was the vehicle for an opportunistic strategy on derivatives. This dynamic, as rapid as it is unstable, could reverse sharply if leveraged positions are liquidated without support on the real market.

Zcash in Freefall

Opposite to Monero, Zcash suffers a significant 25 % drop over the week. Some observers mistakenly interpret this decline as a loss of interest in the project.

However, according to Quinten van Welzen, head of strategy and communication at Zano, this drop does not reflect a fundamental disinterest : “short-term moves like Monero rising and Zcash falling mainly reflect positioning, leverage, and timing rather than a reversal of privacy demand,” he said.

Such a correction thus fits into a capital rotation dynamic within the privacy coins microcosm, where arbitrages are often amplified by low liquidity and heavy speculation.

However, Zcash has a major asset: the interest of institutional investors. Crypto asset manager Grayscale has filed a request with the SEC to convert its Grayscale Zcash Trust into an ETF. If approved, it would be the first ETF backed by a privacy coin, potentially paving the way for wider adoption of ZEC on regulated markets.

This prospect, although not yet finalized, represents a significant strategic difference compared to Monero, often shunned by institutional players because of its total opacity.

In this light, the evolution of Zcash’s situation could well be determined by medium-term regulatory developments rather than solely by the speculative dynamics seen this week. If the ETF is approved, it could catalyze a new wave of institutional interest in privacy coins. Conversely, an SEC rejection could reinforce regulated markets’ aversion to this type of asset, favoring more open or technically hybrid projects.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

Crypto ETF Inflows Rise as Ethereum and Bitcoin Attract Investors

Quick Take Summary is AI generated, newsroom reviewed. Ethereum ETFs recorded $60.82 million in net inflows on November 26. Bitcoin ETFs saw $21.12 million in net inflows, with Fidelity’s FBTC posting an outflow. ETFs provide easier, safer access to cryptocurrencies for both retail and institutional investors. Steady inflows indicate growing confidence in crypto markets and wider adoption potential.References On November 26, Ethereum spot ETFs recorded a total net inflow of $60.82 million, marking four con

coinfomania2025/11/29 06:21

XRP News Today: XRP's Golden Cross Momentum Faces Challenges as Long-Term Investors Exit

- XRP confirmed an hourly golden cross as two U.S. XRP ETFs drove $164M inflows, boosting price 7.05% to $2.20 amid broader altcoin rebound. - Long-term XRP holders sold 84M tokens (56% weekly increase), signaling profit-taking risks despite short-term accumulation and $3 price targets. - Shiba Inu saw 1.36T SHIB volume spike near support levels, suggesting strong-hand accumulation but failed to break above $0.0000080 resistance. - Bitcoin faces bearish "dead cat" pattern near $90K, with ETF outflows and t

Bitget-RWA2025/11/29 06:16
XRP News Today: XRP's Golden Cross Momentum Faces Challenges as Long-Term Investors Exit

Cardano News Update: Monad's Total Value Locked Surpasses ADA and ALGO, Yet Concerns About Long-Term Viability Remain

- Monad (MON) surged to $0.048 with 140% weekly gains, driven by mainnet launch boosting TVL to $150M and 8.9M transactions. - $269M Coinbase token sale and 3.3B airdrop fueled growth, while 50.6% token supply locked until 2029 aims to stabilize supply dynamics. - Wormhole's MON cross-chain gateway targets Solana liquidity, but fake transfers and 27% team allocation raise decentralization concerns. - Bitstamp's Hayes forecasts $10 price target as $1.2B daily volume triples market cap, though TVL sustainabi

Bitget-RWA2025/11/29 06:16
Cardano News Update: Monad's Total Value Locked Surpasses ADA and ALGO, Yet Concerns About Long-Term Viability Remain