Monero reclaims the privacy crown: awakening of XMR's competitiveness from the Zcash crisis

According to the latest data, XMR (Monero) has increased by 3.64% within 24 hours on January 9, 2026. It is currently trading at $453.35, with a market capitalization of $8.363 billion, ranking 15th in the cryptocurrency market. Behind this seemingly ordinary daily increase, it reflects an important shift in power within the privacy sector—while Zcash faces a governance crisis, Monero is reaffirming its leadership position in the privacy coin field through its stable technical foundation and clear project positioning.

Structural Recovery in the Privacy Sector

XMR’s recent performance is more than just a 3.64% rise in one day. Market data shows that Monero has increased by 8.92% over the past 7 days and 16.02% over the past 30 days. This sustained upward trend indicates a broader recovery in the privacy sector.

This recovery is not accidental. The privacy sector is undergoing a paradigm shift—from early “adversarial” anonymity to more systematic, composable, and compliant infrastructure models. According to market analysis, a clear phase of recovery emerged in the second half of 2025, with traditional privacy assets like Zcash and Monero outperforming the market overall.

The driving forces behind this shift include:

• Gradual maturation of regulatory frameworks, making privacy and compliance less mutually exclusive
• Mature application of cryptographic technologies such as zero-knowledge proofs
• Deepening institutional participation, increasing demand for privacy infrastructure
• Policy pushes like the EU DAC8 regulation boosting market demand for privacy protection

Zcash Crisis Highlights XMR’s Relative Advantages

Recent events involving Zcash have accelerated this transition. On January 8, the core development team ECC of Zcash collectively resigned, with former CEO Josh Swihart publicly accusing the board of “malicious governance.” This sudden event caused ZEC to drop over 20% within 24 hours, with short positions liquidating for $19 million.

In contrast, Monero’s project governance appears more robust. According to project information, Monero is entirely driven by volunteers and has an active global community, including the Monero Research Lab (MRL). While this decentralized governance model may be slower in decision-making compared to traditional organizations, it demonstrates advantages in risk resistance and long-term stability.

Policy-Driven Privacy Demand

The EU DAC8 regulation further amplifies the demand for privacy protection. According to relevant information, starting in 2026, all EU custodial crypto platforms must report user IDs, tax numbers, and transaction records. This policy change implies:

• Increased pressure on user privacy for custodial wallets (exchanges, bank wallets)
• Rising privacy needs among non-custodial wallet users
• Renewed recognition of privacy coins as tools for privacy protection

This regulatory environment creates new demand scenarios for truly private currencies like Monero. Unlike Zcash’s “optional privacy,” Monero employs a mandatory privacy design, with all transactions defaulting to privacy protection, which becomes an advantage under policy pressure.

Future Directions of the Privacy Sector

It is worth noting that the privacy sector is diverging. Some projects like Dusk and Concordium aim to balance privacy with compliance, moving toward “privacy plus infrastructure.” Others, like Monero, remain committed to the pure privacy coin positioning.

These two paths are not in competition but are complementary. As institutional participation deepens and regulatory frameworks mature, market demand for both types of privacy solutions is increasing. Monero, as a representative of traditional privacy coins, is regaining market recognition in this process.

Summary

XMR’s recent rise reflects more than just a price change; it signals a structural recovery in the privacy sector. The governance crisis of Zcash, the introduction of new EU regulations, and rising privacy demands collectively highlight Monero’s relative advantages.

Data shows that the 16.02% increase over the past 30 days already reflects the market’s revaluation of its stability and privacy attributes. In the broader context of the privacy sector shifting from “adversarial” to “compliant,” projects with clear positioning and robust governance are gaining more attention. The key questions moving forward are whether this privacy sector recovery can be sustained and whether Monero can maintain its leadership in the new market environment.